I don't think it was a bad idea trying to tell the story in the appendices of the LOTR amongst the Hobbit story.
I think what it all boils down to is how it has been executed. To say it's a mess and to chop it down to a single film or 2 films would certainly be an interesting watch of how that would alter our perception of the story on film.
There is certainly some huge chunks I'd chop from the first one.. Perhaps it's worth starting this project now and as the films are released by the time the last one comes out there would be less work to do.
I'd be interested to say the least, of seeing this fall into some shape at the hands of some talented editors here.
And whoever does this please cut down on Jackson's miraculous sequencing of utter nonsence they really pull you out the film. Especially that treetop sequence with the orcs. It's like a carry on film.
This pretty much sums it up