This is just bogus. I get that this could be misconstrued as racial profiling, but its god damn Hobbits! I hate to let every non-light skinned race out there know, but LOTR and The Hobbit where written in a sort of quasi Medieval european society... only with dwarves, elves, orks, and a medley of other crazy coolness, but not a lot of any other races of cultures beyond what Tolkien thought up.
The real problem is, if I'm gunna be watching The Hobbit, and suddenly a pakistani, black or Asian hobbit was on the screen, as a fan I would, sadly, completely loss any sense of immersion, and immediately think to myself, "whats the deal with that Asian hobbit?". The movie universe was just shattered.
Its not a matter of me being racist, I'd just suddenly realize I'm watching a movie and am in a theater and not Middle Earth.
Feel bad for the poor guy who lost his job over this, even if it was just so the company could save face.
... actually, wait, this whole situation is just ridiculous in general... what I just said is so troll worthy.