That’s a clever idea!
My ideal version would be a 3 in 1, more heavy on cuts than most versions to focus on a single important event for each act - The Riddle Game, Bilbo vs Smaug, and the Arkenstone dilemma. Rivendell would be cut entirely, for example, in order to give more time to the elves which have a real effect on the plot.
I could see that, I guess there are still so much… stuff. Bilbo’s and Thorin’s relationship has got to be the core of the narrative. It would still have to be a massive movie to fit those big moments, but keep everything that gives the Arkenstone plot meaning… but if it’s possible to pull off, that would be great.