Well I think what a few of you are neglecting to mention about The Hobbit is that it is a children's book. Though complex by today's standards of education, The Hobbit is a freewheeling quest story for children. I first experienced it as a young kid when I saw the old (from my persepective
) cartoon film which in turn inspired me to read the book. So while The Hobbit technically takes place before The Lord of the Rings, it is a more whimsical story intended for a younger audience.
Now the main reason to read Lord of the Rings is just to experience someone who had utterly mastered the English language.