It was followed up. Be glad ypou havenseen it...
But yes, it would have. If the film actually had been satisfactory, the felt urgency of the project would be much lower, and there is a good chance no producer would sink the money into it. Without that, production values in fantasy are likely to stay lower, and Jackson gets to do disaster movies or something.
And then CGI goes mature and someone says "NOW we need to make Lord of the Rings the way it was MEANT!" Please God let it not be Cameron...