I think it could be two films, but I'm not so sure about three. I would rather enjoy seeing some of the more obscure things up onscreen--I was totally pleased with the "dwarf women" bit in The Two Towers, because I read that section as a kid and thought, "Wait--does he mean the women have BEARDS?!" Mostly, though, I think the breaking it up has to do with dollar signs in studio execs' eyes--and I'm sensing that Peter Jackson really doesn't want this to end.

It is hard to define just WHAT The Hobbit is. It is kind of actiony, and kind of comedic, but ... yeah, I don't know. "Adventure fantasy," maybe? Or just "Completely Awesome"?