Everybody has to do what's best for them! For me, I love the movie theater experience and I haven't been exposed to enough disrespectful audience members to persuade me from never going to the movies again. There is something about watching a film in a group environment that you can not...
The first film is not as good as the second, but that would be a mistake by some fans as there are some important events that take place in the first film. The Bilbo and Gollum sequence is one of the best in the entire series of these films including LOTR.