Well, there's a lot to unpack here. But because I have a lot of time on my hands, I'll throw some ideas and comments onto the table.
1. I am concernicus about using LOTR. Frankly, it should probably get its own land, if not an entire theme park to itself, considering how vast and amazing it is. If we're talking realism here, then the films would likely be a major source and then there's the licensing, and Warner Bros./New Line/Peter Jackson. Idea wise - I'd base a land on The Hobbit, as that has a "smaller" setting and could encompass the Shire, Mirkwood, and the Lonely Mountain (with a mine cart coaster inside).