I would have said the same when Star Trek: Enterprise began, or the Mandalorian (Star Wars TV) but look how much Star Trek and Star Wars is being consumed now. It is hard to keep up with it now.I'm really not sure who this tv series is for. It's missed the peak interest with the movies, and the clamour for fantasy in general doesn't seem to be as much as when GoT was at its height.
There is a market for quality fantasy, and if you want to make TV within a fantasy universe franchise, then there is no fantasy universe that is bigger, deeper, more well known, more colourful, or more fleshed out, than Middle Earth. I can see exactly why they want to make this, and why so many people (including myself) are interested in it.
The only fly in the ointment is what the quality will be like! It isn't just a question of money or of talent. There needs to be some spark there too.