It WAS excellent, no doubt. It was hamstrung by production issues- the reason the Shadow War finishes so abruptly in season 4 and why season five seems to be dragging its heels so much is because they had been told there wouldn't BE a season 5; originally season 4 would have ended with the end of the war and season 5 would have been the fight for Earth, and tyhe ISA would never have appeared in the series.
Yes, obviously, LOTR was an influence- as was a lot of British sci-fi, as the creator, JMS, keeps going on about, JMS is a right nutter, by the way.
Still, it can be exaggerated and people can have selective memories. I preferred the more balancee character of Sinclair to the nutty "Problem... let's NUKE it!" approach of Sheridan (whose romance with Delenn never convinced me), but much of the first series is pretty lame standard sci-fi, with only a couple of episodes (most notably Babylon Squared) really pointing the way ahead. Incidentally, a lot of people make out that Sinclair was not greatly acted, but if you ask me, NONE of them acted well in the first series, even the bevloed Mollari and G'Kar. They all got better as time went by; Sinclair never got the chance. It seems likely he was dropped after some 'argument' with JMS; the re-plotting is a slight shame but it did all come out well in the end. Must of the last series was pretty dire was well, except the Centauri plotline, which was engaging but even that was really only a re-hash of the Shadow plot.
JMS did get to make War Without End (which orignally would have been the final episode, instead moved to mid-way through season three to close the arc left dangling by Sinclair;s departure), bringing Sinclair back, even though his 'warning' to Garibaldi seemed a bit pointless. Actually, there are a hundred continuity issues that interest me about that episode... but they'd probably bore you.
Anyway, certainly one of the best ever made, and it started the whole movement of multi-year storylines in other series (I especially noted how DS9 turned itself into a long-term plotter afater B5s success). Great stuff- but a shame it was never able to sequel itself with any success.