I've found The Two Towers to be the best for awhile now as well. To start off with, it is the overall best film visually. There are literally no flaws I really find with it in this regard; the effects are perfectly utilized at the cinematography has gorgeous composition and usage of lighting. Fellowship of the Ring has a few small missteps in this regard and in Return of the King the CGI tends to overwhelm the imagery too much (aside from simply using too much CGI and overly graded lighting, here's another example - they try to add more "texture" to Golem in Return of the King, but it actually just makes the character look less organic with the fabric of the film). Peter Jackson's direction also takes a couple amateurish dives in Fellowship of the Ring, mainly the presentation of the Galadriel character later on in the film, and several such dives in Return of the King. There isn't a single false note in The Two Towers, though.
I love how well The Two Towers stands on its own as an ensemble adventure film as well. It's essentially the best ever within that genre, for me. The pacing is brilliant, the mixture of epic and intimate (often at the same time) is glorious, and there are just so many amazing high notes in general, all spread between interweaving narratives and locales. I will say the plotting of The Two Towers does make one mistake, though, which is that it needed to include the flashback scene from the extended edition with Faramir + Boromir + Denethor. This section of the film loses some weight and clarity without that scene, which subsequently makes that continuing plot line in The Return of the King weaker.
I believe the plotting of Fellowship of the Rings is genius, btw. It's stunning how perfectly they condensed everything down there, PARTICULARLY the opening segments of the film. It's actually very annoying in the book how Gandalf just disappears for years and years, as well as other unfocused points. Fellowship also succeeds the best of all the films in how well it introduces us to all of its characters (which includes Galadriel, even though the film messes up with her later on, since her opening voiceover at the very beginning of the film is chill-inducing), which is quite a feat with the number it has to present. The introduction to Hobbiton is also one of the most charming things ever.
Also, to be fair to Return of the King, even though it hits a lot more low points than the other films, it's still a wonderful achievement and also hits some of the biggest highs. The part at the end with Frodo saying "how do you pick up the strands of an old life" just destroys me every single time. The lighting of beacons, Pippin finding Merry on the battlefield, Eowyn's defiant triumph on the battlefield...those all come immediately to mind as being extremely impactful, and there are some others too which are at that level or close to it.
Howard Shore's music throughout all of the films is a pure Godsend.




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Now it's not so much you hire "blockbuster" directors for blockbusters, but outsiders from the independent scene or people that weren't genre experienced previously. I consider this a good thing.