The Hobbit Nazguled?

"This outcome is not what we anticipated or wanted, but neither do we see any positive value in bitterness and rancor. We now have no choice but to let the idea of a film of The Hobbit go and move forward with other projects...We got to go there - but not back again..." In an e-mail to The One Ring, PJ and Fran say they're off The Hobbit due to outstanding and unresolved matters regarding their lawsuit against New Line, who want to move on the project now before they lose the rights. MGM (who owns the distribution rights) says it ain't over yet, but, my, it's not looking good.