I think it was a good decision for PJ to cut out those 17 years of waiting - it doesn't build suspense, and it's odd for a movie beginning. Can you imagine? "Here's Bilbo's birthday party, and a bunch of odd stuff with a ring. Then seventeen years later..." it just makes the watcher go, "hang on, why did it take so long?" and it's bit disorientating. Also, it really impresses upon the watcher a sense of urgency and helps to make clear the fact that this is serious business. I really liked how the movie did the first bit, no complaints at all, but the book has some neat quirks that I like, such as all the dialogue between Sam and Frodo and Pippin. "I don't keep water in my pockets!"