Good gracious me, I don't think it's a happy ending! I don't know how he could have possibly written a
better ending for such a story, but I don't think that it's a happy one. There's too much sorrow mixed into it. Too many farewells. It was too big of a price to be paid, the quest was, in order for the end to be what I would define as happy. And it wasn't just Frodo who had to make a sacrifice, and who had to go because of what he did. But also the elves. . .and many things passed over the sea with them.
For me, however, when it comes time to read that last chapter, and when I finally shut the book and gently brush the back cover with my hand and blink back the tears that always come, it's not for the elves, or for the magic, or the ending of the age, or the world, but for Sam. It's because of him that I mostly think it's a sad ending. I always finish the book asking - Why? But I don't suppose that'll ever be answered. It's just how things end, I guess. I don't suppose I can honestly say that it wasn't a somewhat happy ending. . .but I can't help but feel the emptiness that Sam must have felt, standing on the shore watching the ship until it passed from sight. And it hurts, more than cheers me.
Anyhow. . .there are lots more complicated thoughts whirling round in my head on this topic, but I think that Child has already commented on most of them, other than the one I just mentioned, so I'll let it rest.
-- Folwren