While there was likely little doubt that a Hobbit movie directed by Peter Jackson would look exactly as Hobbit-ish as it should, let the above photo of Martin Freeman decked out in the signature baggy trousers and pointy ears of Bilbo Baggins assuage any fears you may have had. That's a Hobbit, dammit.
Entertainment Weekly also posted a new picture of Ian McKellen doing his Gandalf thing, which you can check out in their exclusive gallery. It's exactly what you would want Ian McKellen as Gandalf to look like. So, basically, this whole movie is a foregone conclusion. Now let's spend the next year and a half obsessively looking at every photo released for the film while continually reacting in a thoroughly unsurprised manner.
Also of note: the shoot for the two films is a staggering 254 days, coming up only a week or two short of the combined filming of all three Lord Of The Rings movies, despite presumably being a few hours shorter. That's...a pretty big time commitment.