One of the things that really bugged me, and this applies to ALL rpgs...
I decided to make a run as far north as possible, just to see what I could see, and from what I could tell, the environment was populated with basically higher level versions of the same crap I was fighting at lower levels. So instead of level 8 bears, it was level 30 bears or whatever. At one point I was running away from level 37 birds of some kind, but they weren't big birds or anything, they looked to be about the same size as a large crow or something, just apparently able to kill a full grown human. I'm not saying we should look for realism in fantasy worlds...but some things still need to apply. I don't know if this started with Japanese RPGs, with their "killer butterflies" and such, but I just can't get excited about fighting a level 60 Badger.
Yeah, yeah, I know first hand that badgers are mean little bastards, but I'd wager there isn't one in this world I couldn't just kick until it stopped breathing, and I don't have the biggest or most powerful arms in the world, but I'm pretty sure I could kill any crow I came across, level 37 or no, with my bare hands, let alone a longsword +5 vs. angry avians or wtf ever.
The other problem I had was that I ran all the way to Rivendell, and besides a couple pretty buildings, there wasn't crap else to do. I think frodo said a couple random things if you clicked on him, like "ooo I hope the gaffer found some topical ointment" or some such, but bilbo or gandalf wouldn't even speak. They just stare off into space.
I dunno, I guess I'm nitpicky. It's a shame because the environments really are beautiful, except the awful waterfalls. They look like something from N64 waveracer. But the rest is beautful...I almost misted up a bit the first time running through the shire.