I'd say LOTR VE is definitely coming. I'd expect much better artwork (even resolution-wise) and much improved sound (it's been done before on VEs), which will get lots of people lining up. Even more could come (a full LCD rework would be awesome). The question is when; it could be soon but it could just as easily be be 5-10 years down the line.
I wouldn't wait for the VE if a good LOTR came up reasonably locally and I had the cash, but I'd also probably upgrade to a VE if I liked what I saw.