They're cartoony, there's zero practical effects, or any attempt to make them look like anything that could or would actually exsist, and just a general disregard for reality in general.
It reminds me of Oz the great and powerful or Burtons Alice In Wonderland, except instead of it trying to be a magic wonderland, it's supposed to be Middle Earth. Which is the same thing I've been saying since I saw the first trailer for the Hobbit. It's not Middle Earth, and they're not even trying to pretend like it is... it's some other cartoon universe where gravity doesn't exsist and everyone walks around going mork mork mork.
It's kinda like they saw that shot of Legolas looping around the horse to get back on top from LOTR (The not very great one), and thought that they should do an entire movie (trilogy) in that style.
Even Smaug didn't do anything for me, he looks like a cardboard cut out of a dragon slapped on top of a frame from Fantasia.
And yes, I've officially given up on this series.