Perhaps Children need to learn that not all fantasy books are about 'chosen' kids with magic and hilarious side-kicks.
I don't know how you would try to make it appeal to children. Its such a tragic tale and very little good happens not to mention the writing style is very complicated for those not used to it. although it is also interesting that, according to the people who work at my bookshop, The Hobbit is now generally advised to be put in the older children's section, usually about 16 upwards. Are children getting less able or less willing to read?
Okay, enough of the social commentary.