I think that they definitely did the book justice with this movie. My only big problem with it is that they used CGI animation to create all the orcs, all the goblins, every single monster. And there was no blood at all. All of the grittiness and gore that was the Lord of the Rings is completely lost on the Hobbit. CGI can't replace the look of real actors with well done effects makeup. It was definitely made with a younger audience in mind.