Finally saw the movie too.
The beginning is nice enough, but once the story leaves the Shire with Bilbo, it takes a sharp turn downhill. Erebor was beautiful. The piles of gold did not look real at all.
Mr. Jackson shows a disturbing trend of "Tolkien did not know how to write a good story, but don't worry, I will fix it."
Almost all his "fixes" are bad.
Radagast adaptation is a criminal act alone. Galadriel offering psychoanalysis and "maybe something more" to Gandalf is ridiculous. Stone giants depicted as whole mountains moving are silly.
All the action scenes are over-the top, opulent, and frankly distracting - all the silly Disney-esque jumping, swinging and falling to bottomless pits seriously break the immersion.
Arbitrary mini-bossfight at the end of the movie (because every Hollywood action movie needs a bossfight, right?) with Bilbo charging to battle with his little sword is absurd.
The acting is mostly OK, with Gandalf, Galadriel and many of the dwarves being very good. Ian McKellen has aged quite visibly, poor guy, but is still strong in the role. The guy playing Bilbo, on the other hand, seemed to be quite poor, I don't like the overly expressive, wooden, neurotic style of acting full of forced grimaces that are supposed to be funny.
Similar to LOTR, I expect the trend to worsen in the next two movies.