I really enjoyed "The Hobbit" by Rankin/Bass, but thought this movie was a bit of an embarrassment. The animation used the odd Rankin/Bass style as the Hobbit, so I couldn't fault it too much. I found most of the songs painful to sit through. I did get a good chuckle out of the disco Orc song "Where there's a Whip..."
The story was quite easy to follow; there was narration which nicely explained things. The end battle was less than spectacular. The Hobbits, Orcs and Gollum were good, but the Human characters failed to offer any engaging interactions.
I think this was made for TV - to excuse the Bakshi film which should've been made.