I haven't seen this posted here yet, if it has, delete it please.
I for one, couldn't be happier, since PJ was out of the question for the director's chair, I had been worried about who they would pick to direct, well not anymore, I have been a del Toro fan for a while and I think he's perfect for this project. I think the article linked really nailed it on del Toro's description:
If you've seen any of the behind the scenes footage of any del Toro movie you'll know what kind of approach and dedication to expect for The Hobbit.Few filmmakers have the cachet that del Toro has, as well as a deep love for the source material, an assured grasp of fantasy filmmaking and an understanding and command of geek culture as well as its respect. Del Toro has built that goodwill through such films as the Oscar-nominated "Pan's Labyrinth," "Hellboy," "Blade 2" (which was made by New Line) and "The Devil's Backbone."