Hell no!
Yes, they have admitted that they have LOTR to thank for; because without the said film, they wouldn't know how to create a show in epic proportions.
Yes, this show is the most top-rated show on Philippine Television today. One of the reasons is that they have learned how to create lavish costumes, dreamy settings, and out of this world animatronic characters.
But this doesn't mean they copied LOTR! I mean, the story itself is different! LOTR's story involves a nobody carrying the world over his shoulders and ends up saving it in the end. While in Encantadia, it is partly the story of four sisters torn apart by one of the sister's greed; and partly the story of a young fairy princess brought to the mortal realm where she suffers tremendously. The story of Encantadia merely tells what is happening in our country right now. Not that our country is rich, in contrast, it clearly states how difficult it is to live in this country (or the world for that matter). I know it may seem a bit gloomy, but that's the reality. Life is difficult. But living life, is a job. Especially, if you have no one. All you can do is work hard, and hope for a better tomorrow. This is what Encantadia wants to show us: "perseverance is the key to survival".
Yes, i admit that an epic quest has yet to be shown. But there is more to a story than an epic scene! What matters more in a story is the HEART a writer puts in it. Like with LOTR, Tolkien gave his heart out in his novel. Likewise with the writers of Encantadia. Unlike in LOTR where the hero needs to travel away from his homeland in order to create a story, Encantadia has its story right there its lands, that's why there is no need to travel to distant places!
According to one opinion, Encantadia lacks the mythology that LOTR had. But why would Encantadia need a mythology, when Encantadia itself is the beginning of the mythology?! Unlike LOTR, Encantadia doesn't need a mythology to stand up on it's own. It has itself to stand up on.
And regarding its viewers being unintelligent. Well, i beg to differ! We may not know what 'The Silmarillion' is. But hey, do you know the world of Encantadia? As what my teacher said, a true genius knows that he knows everything and nothing at the same time. Don't call yourself intelligent when you're not! Encantadia is pure Filipino excellence, that's why Filipinos like me love them. Unlike you.