A 3rd Hobbit movie: Bad Idea

Peter Jackson confirmed today that he will make The Hobbit into three movies, rather than two as formerly planned. To my eye, this is a spectacularly bad idea. Why, you ask?

( Good question... )

EDIT: I just saw a wonderfully concise statement of the issue elsewhere online: "Bilbo's reaction to the announcement of a 3rd movie was actually already quoted in The Lord of the Rings: 'I feel thin, sort of stretched, like butter scraped over too much bread.'"