We only needed one or two movies. The title is The Hobbit. Not The Dwarves, not The Wizard, not The White Council, The HOBBIT. The movies should focus on Bilbo. While its true that Sauron was an underlying threat in the book, this was a lot more subtle, and we didn't follow Gandalf on his mission to investigate him. We didn't need to see it in the movie either. Everytime it cut back to Gandalf's quest to investigate him, it felt like a big commercial break interrupting the story at all the good parts. Kili and Tauriel's romance was forced into the story and added absolutely nothing. The thirty minute long cat-and-mouse chase between the dwarves and Smaug at the end of the second film was pure padding (if they wanted a big climactic fight scene at the end, they should have used Smaug's attack on Lake Town and his subsequent death, as it felt like I was watching an ending scene at the beginning of the third film anyway), and undermined the threat that Smaug posed.
The 1977 animated film was only 75 minutes long, and it told the entire story. Yes, it was a little bit rushed at some points, but it just goes to show that one three-hour film would have suited Peter Jackson's adaptation just fine. If not, than two films could have worked. Three films was just insulting.
Basically, the first film is all exposition, with hardly any story. But the filmmakers tried to stretch it out to make it feel like a story with a climax, but all it really felt like was exposition with lots of padding. At the end of the first film, I felt that the story had barely started.
Back when Jackson planned to do just two films, the escape from Mirkwood was intended to be the climax of the film, with the shot of Bard first walking up being the final shot. In my private fan edit, I actually did this same thing, to see how well it worked, and I can say with confidence that it's a much more satisfying conclusion for a movie split in two.
The movies had so much potential, and there is a good movie buried under all the padding, but the movies as they were actually were released are quite a bit of a mess.