Frodo Baggins to Return in The Hobbit
Looks like there's some serious confirmation that Frodo will indeed be returning in The Hobbit... how? Here's what TORn says:
As readers of "The Hobbit" know, the tale of "The Downfall of The Lord of the Rings" and "The Hobbit or There and Back Again," are contained in the fictional "Red Book of Westmarch." In Peter Jackson's LOTR films, the book is shown on screen and written in by Bilbo and Frodo and handed off to Sam Gamgee. (Not explained on film are Sam's progeny later having the book and being Wardens of the Westmarch—hence the book's title.)
The fictional book, and either the telling from it or the reading of it, will establish Frodo in the film experiencing Bilbo's story. Viewers are to learn the tale of The Hobbit as a familiar Frodo gets the tale as well.
Since the speculation is now everywhere around the interwebs, TORn can confirm that as of now, the plans are to feature Frodo in the opening sequence of the films. It is unlikely that studio Warner Bros. or Team Jackson would change the script at this point in response to the web buzz so we may have just "spoiled" December 2012 for some, but we warned you.
Well... for good or ill, it looks like some liberties are going to be taken with The Hobbit. While casual fans of LOTR had no problem with Jackson's changes in those films (personally, I was disappointed with some of the changes he made--particularly with Aragorn's character), long-time readers of The Hobbit will no doubt cast a wary eye on any departures from the original text...
At the least, making this change makes The Hobbit feel more like a sequel to LOTR than a prequel--and that doesn't strike me as proper.