Well, you aren't supposed to have sense in this kind of movie. (Snails was the one who wanted to forget all this nonsense and do something safer, right?).
I don't see the problem with it being better than the live-action Lord of the Rings films.
Seriously, there are a good number of people who prefer Ralph Bakshi's version for legitimately reasons, can people please stop insisting that it's inferior to the Peter Jackson version.