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While the story line was fantastic, I found the movie itself to be 'over-produced.' The special effects were over-used and quite frankly distracting, especially the goblins. I felt like they were simply trying too hard to visually impress the audience and got carried away. It made me feel disconnected from Middle Earth. I found that 3D detracted from the movie itself, and it made action scenes hard to see, and made everything look incredibly fake. However, Gollum was fantastic, and that itself deserves an Oscar. I was pleased with Peter Jackson's adaptation of the story, and I felt he kept true to Tolkien and his works.
