And the advantage to THIS prequel, would be that it is its own story, and was penned by someone who is now a world-reknowned author.
I don't know if they could stay true to it, though. A company full of dwarves doesn't have nearly the sex appeal the fellowship did, and there are no romances anywhere. I bet Peter Jackson would be willing to make it right, but I don't know if New Line (or any studio) would let him. I've already heard musings that Arwen might be inserted into the Hobbit if they made it. I mean for Heaven's sake, Liv Tyler is cute, but they already made Arwen's part about 100 times as big as it originally was in LOTR. If she gets more than a cameo in Elrond's house, I'm going to start throwing things.