My LOTR had color DMD when I bought it, and I added Pinsound. I'd recommend going the same route in upgrading a game, especially if it's likely a keeper.
Color DMD is fun, especially when modes start on LOTR, and because it was implemented well, looks very good. More importantly, it does help somewhat during gameplay - the color differentiation seems to help one get information quicker when glancing up to see status.
My LOTR sound board died last year, and after some research I decided to spend money on Pinsound + Headphone Station rather than board repair. LOTR is my wife's favorite game & likely staying in our house for a long time.
We have all 4 mixes (including original) on the card and (with Headphone Station) can switch between them on the fly. My wife said the Wool & Hawknole mixes made it seem like playing a new game. There are a few choices they made that I don't agree with, and a few challenges with levels, but mostly I'm very impressed with the alternate mixes & play with one of them loaded.