Well, the main issue with the too long thing is that Hobbit is really thin book. The entire audiobook version of it only lasts for a bit over 3 hours while LotR is about 60-80 hours long.
Personally I think the first movie of Hobbit worked really well as they managed to add pretty much everything of the book 'til the moment of end along with some nice appendix content and cameos (and some unecessary subplot, looking at you Azog).
But even now the first movie took already first two thirds of the book and I wonder how thin it will get in the two other movies if they want the Hobbit storyline to go along the entire trilogy. Even with appendixes it seems a bit too "extended" right now.
We'll see.