Disney's Lord Of The Rings...??!!

Ok, this isn't a new LOTR Animated feature! I was just wondering what will happen had Disney embarked on making an LOTR Animated flick prior to or even the decision of making a live LOTR action flick?! What do you think guys would it look like? Personally, i think an animated feature would be much better than a live-action one, coz in an animation, there's more flexibility and considering the birth of a very high-tech animation technique nowadays, i think the movie would gain much more color and life - there would be no problems in digitally-shrinking the hobbits (coz that effect was quite unpolished in the movie, especially during the Council of Elrond scene), and many others...Now, what do u think?