I've heard talk of it being made into two movies, but The Hobbit is only one movie. Yeah, lots of stuff happened in it (more than FotR), but most of the memorable stuff are more like action vignettes...the Battle of Five Armies, however, is a great capstone for both the book and the movie. The scale and scope of it can't be matched or compared to anything else in the book, and ending a first movie with anything less is a crock.
Also, Peter Jackson WILL do The Hobbit in the end. Apparently they wanted Sam Raimi to do Hobbit. And that's all well and good, but when you realize New Line put Jackson off the project to punish him for suing them for money they stiffed him on, it really invalidates any rationalizing of the decision.
However, from all accounts, MGM was banking on Jackson helming this project. Chances are that if New Line does get someone on board to do it, MGM might yank the money out from under them and it never gets started. Combine that with New Line losing the movie rights to The Hobbit later this year (they wouldn't have time to get it off the ground, anyway) and Tolkien Enterprises backing Jackson's involvement 100%, and I suddenly don't feel as bad about it as I initially did. When everyone goes to bidding for the rights of this, Wingnut Productions will probably wind up with it, cutting New Line out of the loop entirely. And given that the actors from LotR that would reprise in The Hobbit (Ian McCellan and possibly Ian Holm) want him to do it, that won't be a problem, either.
In essense, New Line screwed themselves out of hundreds of millions of dollars. Fuck those 'tards!