The original trilogy were perfect in length, imo.
The early footage was booed for the 48 fps thing, which made the make-up look weird. Watch the movie in normal standards, it'll be fine.
And you thought the make-up in the previous films was iffy? I thought it was fantastic.

"The Director walked, studio did not want Jackson but had to take him. they are adding characters not in the books and stretching it out to cash grab a third movie."

None of that is actually true or accurate.

Del Toro walked because of licensing issues which were taking too long, and he wasn't going to have time to direct any more.

Peter Jackson wasn't originally going to direct because of different commitments, including Lovely Bones and Tin Tin. By the time Del Toro left, Jackson's schedule had freed up, so he was able to take over. Jackson originally not set to direct had absolutely nothing to do with the studio.

So far there hasn't been a mention of any character that wasn't in one of the books. Note that this film does not only take material from The Hobbit, but also from the Lord of the Rings appendices and the Similarion.

The third movie was a decision by Peter Jackson, not the studio. I would've agreed with you on it being a cash grab if it had been the studio that made the decision.