I just really disagree. The Hobbit is, in my opinion, better left as a book than as a prequel series to LOTR. I do think (and hope) the next two films will likely be more in line with LOTR. I truly believe the fans of the LOTR film series who haven't read the books make up the majority of those viewing the new films, and I don't fault them for thinking they were in for some more LOTR. What else would they expect? Book readers got what they wanted, but film fans did not. As someone who is able to separate books from their film adaptation counterparts, I still think Jackson should've trimmed up the first film a bit. The silliness was, in many cases, off-putting to most casual viewers. And again, I believe these casual viewers are the people who make up most of the ticket sales.
I also don't believe LOTR was a household name prior to the movies. Maybe in your household, or your friends, but the average person hadn't heard or knew very little about them prior to the film releases.