As I said, if FFG releases a BL Middle Earth Battle game I'll mosl likely purchase it whatever form it takes. But, on the other hand, felt quite underwhelmed by BoW. First, I'm not much of a fan of the books, I read the first entry and found them to be sort of a soap opera with swords (firmly sheathed swords for the most part :-) ), and the literary style was so-so. And second, all the tweaks and changes made into the game to fix the supposed "problems" of the C&C look cumbersome and fiddly to me.
That said, I'd probably had given BoW a chance would it had been released as a real Battlelore expansion; I mean an expansion pack with a couple battlegroups, a bunch of heroes and just some tweaks here and there to the core BL rules, in order to implement the particular flavor of this fantasy setting. But the way it is designed, it is apparently impossible (or very difficult) to recycle the BoW material into core BL, so that was a big No for me.
What I fear with this (likely?) Middle Earth BL game is a similarly convoluted and closed system, and what's worse, totally incompatible with the original, and that is a shame because if we could mix and match, the possibilities would be huge. I recall reading about siege engines or the like being released at some point for BoW. As attractive as this sounds, It is worthless to me because I can't use them in BL.
Wouldn't it be possible to have the best of both worlds? For instance, you said that the Lore system in Battlelore isn't particularly suited to Middle Earth; I agree with this, as ME is a low, or more subtle, magic fantasy setting (in the big-exploding-fireballs-chain-lightning-and-whatnot sense). Well, this is the same as in Medieval lore, there you have an official rule to implement the lore system to a different effect; so, you can design a subset of the lore deck or even release a new Middle Earth custom lore deck . And the same for heroes, nothing keeps FFG from releasing a ME hero pack (say Aragorn, Gandalf, Saruman and the Witch King, for instance), following the general rules of BL heroes but with their own customised powers and abilities. This way you'll have a proper Middle Earth expansion, and what's best, a lot of material fully transferable into core BL for you to use.
I hope I made some sense, english is not my first language and that was a lot of text :-)