Apparently still concerned that audiences may reject en masse a Hobbit without the familiar faces of the Lord Of The Rings trilogy, Peter Jackson is now making plans to have Elijah Wood reprise his role as Frodo Baggins, appearing in sequences that bookend the prequel and provide a comforting feeling of continuity not sufficiently supplied by the return of Ian McKellen, Andy Serkis, Cate Blanchett, and Orlando Bloom. According to The One Ring (via /Film):
As readers of “The Hobbit” know, the tale of “The Downfall of The Lord of the Rings” and “The Hobbit or There and Back Again,” are contained in the fictional “Red Book of Westmarch.” In Peter Jackson’s LOTR films, the books are shown on screen and written in by Bilbo and Frodo and handed off to Sam Gamgee. (Not explained on film are Sam’s progeny later having the book and being Wardens of the Westmarch — hence the book’s title.) The fictional book, and either the telling from it or the reading of it, will establish Frodo in the films experiencing Bilbo’s story. Viewers to learn the tale of ‘The Hobbit’ with a familiar Frodo getting the tale as well.
So there you go. Any crashing waves of audience disorientation over embarking on a totally new chapter—or roiling storms of Tolkien diehards incensed over Frodo appearing in a story that occurs years before his birth—will be calmed in the azure still of Elijah Wood's eyes, isn't that nice? There have also been hints that Hugo Weaving may return as Elrond, and other elves such as Liv Tyler’s Arwen and Marton Csokas’ Celeborn are strong possibilities as well. At this rate, perhaps the denouement of The Hobbit Part 2 should just mirror The Return Of The King’s never-ending epilogues and retell the first three movies all over again?
Anyway, the best part of this news: even more footage for YouTube tributes.