Well, gotta be honest - I, too, am a little disappointed in the Smaug reveal. I expected, check that, hoped for a more omnipotent "toy" on the playfield. Something that really drew your attention visually and kept you engulfed via gameplay interaction. But, read on...
That said, I do think the sculpture is very good. I like the use of the colors, the coins, etc. (not sold on a gold Smaug yet...) and the premise is definitely good (dragon coming out of the mountain and so forth). Would I have preferred to have Smaug directly interact with the ball? Perhaps... But if I analyze the concept a bit more, I think Smaug's interaction, while not directly (except maybe the ramp diverter which is his tail according to JJP) with the ball, will be significant in the overall game. I view this as a huge plus.
If Smaug is following the ball and incorporating a ball lock feature and providing direction on what to do next and perhaps taunting you and moving his mouth to speak and having simulated fire and so on... I would suggest that is extremely interactive - not with the ball, but with the player.
To me, The Hobbit pin looks like an adventure. This is obviously a game that will have seriously long ball times which will take you on a journey. (Of course, if you suck at pinball like I do, it'll still be a short journey!) Forget it if you're looking for a quick pin fix, a 10 minute "nooner" if you will - this game is probably not for you! 28+ modes, a crap-ton of things to shoot at, a toy interacting directly with you instead of (or more than) the ball, great playfield, great sound, great light show. I'm definitely staying in on this. Of course there will be limitations on the extent of the player/Smaug interaction, but this, in my opinion is damn cool overall.
A little more tempering of my enthusiam: I do think the book is silly. I would have at least preferred a limited interaction feature, like the crystal ball on WOZ or Jay's Palantir mod for LOTR. I was also hoping for other interactive toys - like the rumored apron map or the 5" LCD. But perhaps more will be incorporated later and perhaps what was shown at EXPO is not 100% complete. Although I do know Alex said hardware is 100% complete. Could be it is what it is at this point.
Also not totally enthralled by the sling axes - but that is modder's heaven right there!
Last but not least, I certainly agree with another Pinsider's comment that the top of the playfield, especially around Smaug, looks unfinished. Creating fixed mountain sculptures would be a benefit here and would polish up the area nicely. Could be that JJP is going to offer these as optional factory mods ala Stern.
Overall, I am happy with the machine and am very much looking forward to having it in my house! Now I just need to decide if I want to change to the Smaug SE version...!