I have high hopes that the 5E OGL will really start to open up the game...and this would seem to qualify! Very excited for this.
I think the idea behind this is cool but something about Middle Earth just never translated well to RPG in my opinion. This was the problem with the MERP and Rolemaster versions.
I wonder what timeline they'll use.
Shoehorning the D&D magic system into Middle Earth would be quite a task, if that's what they intend to do.