*SLIGHT SPOILER WARNING*
Movie-wise, it's awesome. Great acting, great special effects, and an excellent job creating unique characters for each dwarf.
Book-faithfulness-wise, it's terrible. Azog really did die from his wounds, it took hundreds of years for the Necromancer to gain power, and Radagast never showed up or was even mentioned. (Azog too, for that matter.)
BUT WHO CARES ABOUT FAITHFULNESS TO THE BOOK?! IT WAS AWESOME!!
I am extremely excited for The Desolation of Smaug.
They've already put non-Hobbit books in Part 1, so I can guarantee Part 2 and 3 will be the same way. Not being entirely made up of The Hobbit.
Most of that stuff was taken from the appendices. It really happened, it just wasn't mentioned in any of the books.