Will 'The Hobbit' happen?

Apparently yes.

So apparently 'The Hobbit' is in the casting phase right now. Apparently Peter Jackson has been in London 'meeting with actors'.

There is still no official word on if the man will direct the next two films (I would like to see the financial problems with MGM get fixed first) or if he will pass it on to someone else, however they appear to be going ahead as planned. This is good news for all the costume, set, make up, big-a-ture, and fx people who have no doubt been spending years prepping these films, however with such a troubled pre production once has to wonder just how good the film will have to be to make up for all these headaches.