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It's a kid's book, so it's not going to have the same magic in later life. I think it's the most successful thing he wrote judged on it's own terms and his ambitions for it; LoTR was supposed to be the reawakening of an ancient style of heroic literature, not the foundation of a genre beloved by men who paint their own tabletop miniatures, and the Silmarillion is mostly a collection of his notes that weren't intended for publication (at least, not in that state). But The Hobbit is a pretty good children's story.
Which makes it sound as if I don't like LoTR; not true, but I don't think it ended up what he hoped for.
I'm going to redo the LOTR audiobooks on my commute over the next few weeks I reckon. Although I redid The Hobbit at the end of last year and didn't enjoy it as much as I remembered.