I really thought it was a good movie. Where Peter Jackson failed in LotR to tell us the whole story,(Tom Bombadil, Recapturing of the Shire), he has done a good job of telling the whole story, even with actual book quotes (!).
I really like that the story of Radagast and the necromancer is highlighted more. Also, the action and fighting scenes are pretty well done, especially the Dwarf team-work. (Stone giants (!!!!))
The Orcs have gad a very improvement too, I really like the way they look now! (less childish)
The only negative points are the copy pastes from LotR, like the ring magically falling over Bilbo's finger, and the angry Gandalf.
Also I don't like the attemts to be funny. Some of the jokes are just not funny, an slow down the story. Like the killing of the Goblin King, it's just not funny or heroic anymore when he starts making jokes seconds before he dies.
All in all, I thought it was a surprisingly good movie, and I would really reccomend everyone to go watch it!
I also recommend to read the book before watching, as that really makes the story more comprehensible and enjoyable.
[Edited on 12.15.2012 1:00 PM PST]