Del Toro for the Hobbit? uggbleh!!!

So I read about Guillermo Del Toro possibly stepping in to direct an adaptation of The Hobbit awhile ago, and was more or less hoping it would fade away, but apparently, it hasn't.
I may be on my own here, and possibly offending LOTR fans, but seriously, Del Toro is too good for this. I like the LOTR movies fine: I saw them and enjoyed them, and would be fine with not seeing any of them ever again (though if I had to sit through one again, I'd probably go with Fellowship--its small scale, Viggo Mortenson centric action scenes are much more exciting than thousands of CGI figures charging at each other battle scenes that eat up most of parts two and three).
But Del Toro is one of the best and most interesting directors working today. To saddle him for two or more years with a damn hobbit prequel (all I remember of the book is a brief fight with a dragon) would be a waste, I think, especially when he's got many more interesting projects in the works, like one of the Lovecraft adaptations he's been promising for awhile or another film dealing with the Spanish civil war. I guess making The Hobbit doesn't necessarily rule out those too, or anything else, but it definitely delays them.
Also, Del Toro's films are very personal. His personal interests and obessessions are apparent throughout his work, if not in every frame. To see him constrained to a world someone else created would be a bit of shame.
I suppose its not all bad--Del Toro would presumably make a fortune, granting him considerably more creative freedom (though considering the recent glut of fantasy movies, this isn't a guarantee). And I'm sure the movie would be fine (after all, Del Toro's work for hire on Blade II made that not only an above average sequel, but a damn near action classic, in my opinion). This whole thing just seems wrong though, a waste.

PS - My ambivalence towards LOTR is in no way at a dig at Peter Jackson, who is also terrific, and interesting, despite his involvement this.

PPS- If Del Toro had to do fantasy adaptation, the last Harry Potter book (as was rumored for awhile) would have been much more interesting. I also think he could have done some interesting stuff with The Golden Compass, but I guess both are moot now.