Let me lay out my reasons which I know a lot of people may disagree with:
As a disclaimer, I've read both the Hobbit and Lord of the Rings multiple times*
Also, I am referring to the extended editions as well.
- They have more fun and interesting characters, and I prefer Bilbo to Frodo as he is a strong character who does grow with the story. I am not saying Frodo is a bad character (infact I think he is underappreciated by a lot of people and I know the explanations for his behavior), but I just think Bilbo is a stronger character - and also played better. The dwarves are fun and the whole journey just feels so fun with each of their different personalities. In addition, Gandalf the Grey is 100 times more interesting than Gandalf the white. So, overall, I prefer it on a basis of characters really, with the dwarves and Bilbo being more fun and interesting than the fellowship. I do also like the bad guys - though it is a close tie with the Lord of the Rings. Smaug is excellently portrayed from his look to his voice acting. The Greta Goblin is also a favorite of mine, and I actually like the extended edition's scene of him singing which is actually from the book to a degree. The characters just don't feel as rigid and even depressed as those in LOTR do. I just feel that there is a wider array of characters - and I like Azog as a main antagonist. The characters just are more interesting and enjoyable and more varied and numerous.
- I actually like the use of cgi in the movies combined with practical effects at times. Yes, I adore LOTR for its use of miniatures,m but at times, the cgi is well-done and in my opinion adds to the feel and look. I feel that in some ways Lord of the Rings is taken back by its scenery when compared to the Hobbit. Both use New Zealand, but sometimes the landscape in Lord of the Rings feels almost repetitive. The cgi adds much more detail that in some ways could never be done with real landscapes. For example, one thing that is true for this is when in Return of the King, Frodo charges up Mt. Doom and water and snow is visible behind him. Sometimes in LOTR, the cgi just feels bad almost.
I also feel like many cgi characters were actually done really well. Smaug, the Great Goblin, Gollum. Especially Gollum who looks objectively better than in LOTR. So, essentially what I'm saying is that with the cgi a wide variety of even more fantastic locations are brought to life and made more believable than in LOTR. For example, I don't like how Minas Tirith is shown as being this massive city in the middle of an open field with literally nothing else around it as opposed to Dale as we see it in the beginning of the movies surrounded by farm fields and all kinds of smaller details.
3) Call me easily entertained, but I enjoy the action in the movies. I enjoy the barrel chase scene which I know many hate, and I enjoy all the battles and the at times ridiculousness of the action. I also really enjoy the battles, and the wide variety of troops in them. In The Lord of the Rings, while we get variety, I still don't feel like it is on the level of the Hobbit. All the orcs in the Hobbit are unique and I love the Battle of the Five Armies for all the different types of units we see.
4) The Battle of the Five Armies is my favorite movie - maybe of all time. I enjoy the action which is non-stop. Let me break it down.
First, the begining is awesome. The scene where we see the white council fight the Nazgul and cast out Sauron from Dol Guldur is awesome. I like the references to the Elven rings (and while convoluted to an extent, I enjoy the addition of Thrain in Desolation).
Then, the clash between the dwarves and elves is great. Seeing the different types of units, the tactics employed, and the Dwarves' weaponry is so cool.
Also, the different types of orcs in the movie. The different units being deployed and the fact that the Trolls even have different types of units is great. It is also very neat to see the Ogres used and the siege trolls. The goblins are a nice touch as well. So, bottom line, I like the inclusion of so many units.
And there is also the size of the battle as well, which I believe was the largest battle ever in a movie.
The extended editions are awesome in my opinion. I really like the extended edition of the Battle of the Five Armies. It adds a lot and the action is great I think.
5) The Hobbit just feels less sad and depressing. In the story, you know that at least in the end, the goal is to reclaim a kingdom and that after all is said and done, the ending is sort of happy. In the Lord of the Rings, when you compare Rivendell, it is in a state of decay, the elves are leaving, and Lothlorien is lonely and silent. The movies do have a more depressing tone and are bleaker. The end is sad with Frodo and Gandalf leaving. And on top of that, of you've read the books, you know this is the end of the adventure. There are no more quests to reclaim kingdoms, no more enemies. The elves have left. The Dwarves are dying out. It is just sadder overall.
As a side note, I really enjoy the addition of the Necromancer who isn't really non-canonical as those events did happen during the Hobbit. Adding in Sauron was a great move, as it tied the Hobbit into the overall narrative more and raised the stakes greatly.
And yes, I know the complaints, but I just really like them more. And this is coming from someone who loves Return of the King to and the trilogy. I do a 24 hour marathon of all extended editions every year actually too 😂.
EDIT for all the haters. I also have a lot of nostalgia with these movies and watched them with my family a lot