I think the main problem with the Hobbit movies is that the story gets kind of lost between all the CGI.
LotR, I have rewatched perhaps 30-or-so times. The Hobbit I and II, not really that many times, because the visuals are great,
but the story is often too cartoonished, and, mind the length of the movie, too rushed.
Especially in the second movie, PJ has problems with his techniques of dramatic exposition (generally, a flaw in his storytelling).
That said, while LotR was a VERY GOOD movie series, the Hobbits is still a GOOD movie series,
especially when compared to the other blockbuster fantasy movies of recent history. ("Thinks of Matrix Reloaded, makes sign of protection.*)
The third one, I look forward to. - But frankly, I am too old to care about cinema, or DVD. Either way will be fine.