I read The Hobbit for some high school class. Also in high school, we went to the animated movie, which sucked -- big time.
The Hobbit lays a foundation for hobbits and their habits in that granddaddy of a tale, The Lord Of The Rings Trilogy; it also helps explain how Bilbo got the bloody ring in the first place. But I find The Hobbit to be a weak book, filler, really. The LotR, though, is an excellent story of good versus evil. While it might seem a little long to some, if it were any shorter you'd be pissed.