@ Christopher: If you want to beat up on ethnocentrism in British/New Zealish fantasy, I think Harry Potter's a much better target. The population of Asia dwarfs that of the British Isles by how many thousands, and yet we never get the barest mention of what Asian wizards think of the Voldemort situation? Hell, are their Asian wizards, or is Cho unique because she's half-white and both her parents live in England or some such? And why couldn't Hermione have been of Pakistani descent?
A valid point, but at least there are a fair number of nonwhite actors in the films, even if they're only in supporting parts such as Cho, Lavender Brown, the Patil sisters, Kingsley Shacklebolt, etc. Again, we're not just talking about abstract fictional characters, we're talking about fairness in the hiring of real live people. These actors may not be the stars of the film, but at least they're not being excluded from gainful employment.
And there were nonwhite actors in LOTR too, such as Samoan actors Nathaniel Lees and Robbie Magasiva as two of the orcs. Even if there were some legitimate story reason for the film adaptation to stay faithful to a policy of having no visibly non-Caucasian humans, elves, or hobbits (and I don't agree that there is), that wouldn't rule out diverse casting in heavy makeup roles like dwarves or orcs, or purely motion-capture or voiceover roles.
Say what you will about Lord of the Rings, it's supposed to be regressive and culturally narrow-minded.
The books, maybe. But again, there's no reason why an adaptation
has to do things the same way as its source material. If you adapt something and don't bring a new approach to it in some way, you're not doing it right.
It doesn't matter that it's a film adaptation. The background story remains the same.
Where in the movies is it ever stated that Middle-earth is Europe? You're bringing that in from materials external to the films themselves. Within the film continuity, Middle-earth is just Middle-earth. Nobody in the films mentions Europe by name because they've never heard of it.
Besides, since when did Europe ever look remotely like New Zealand? They're very different climates. If the movies' Middle-earth (as opposed to the books' Middle-earth) were "really" Europe 6000 years ago, it wouldn't have the climate, ecology, and geography it was shown to have in the films. It's a separate entity, and there's no obligation to assume that everything that's true about the books' Middle-earth must also be true about the movies' Middle-earth.