The original LOTR films was ALL practical effects.
This is not accurate. There was a LOT of CGI in those movies. But CGI is not inherently bad. We have this strange notion that CGI is bad and practical effects are good, but in reality a proper blend between CGI and practical effects is important, and both need to be done well. Poor practical effects will look bad, poor CGI will look bad.
The Hobbit movies looked bad because they were rushed. It was like 6 years lead-time for LOTR vs 6 months for The Hobbit or something. So no time for good practical effects.