On one hand, the estate is clearly a victim of "Hollywood accounting" (as was Peter Jackson, I believe, which is why he refused to direct the Hobbit movie for such a long time). That's a downright criminal practice and "victims" perfectly describes those unfortunate enough to be targeted.
On the other hand, JRR the man passed away years ago, and his son is almost 90. Copyright law says one thing, but at what point do we as humans say that the creator has died long ago, and his work should now pass to the public to retell as it sees fit? How long should his children, and their children, and their children, expect to control and profit off of the work of a long-dead man? (Yes C. Tolkien did some original stuff with Silmarillion and Hurin but we're talking Hobbit and LotR here.)
That's a loaded question and obviously C. Tolkien and companies like Disney think copyright should be eternal. (And no doubt New Line now wishes its own copyright on its little gold mine would remain eternal too.) But personally I think stuff should enter the public domain much more aggressively for the good of culture and society.
In such a world C. Tolkien might have made a little cash for a while, perhaps been happy that his family created a cultural touchstone, and maybe went on to do something original and no doubt productive with his own talent. But we'll never know, and now he's spending his last days growing increasingly embittered because he feels that he's lost control of something he didn't even create in the first place.