Wholesale rewrites never go over well with the existing fanbase, which is literally what a company is buying when they pay for rights. Don't like the politics of the author? Don't make the show. Write new content that's consistent with your politics instead. The way they butchered Foundation was even worse. I'm not clear on why they didn't adapt the robot novels instead, as those have ample strong female characters and race-swapping Daneel wouldn't be that jarring, based on his physical description.
These things can be made as period pieces where we discuss the author's attitudes in the context of current ones. Outside of his masterpieces (Starship Troopers, Stranger in a Strange Land, The Moon Is a Harsh Mistress), Heinlein feels incredibly dated. The latter two have problems, but the quality of the material more than makes up for it. It's not a surprise that the one with the least problems is the one that was adapted for the screen, rather than the '60s counterculture icon.
GoT worked initially because it was written by a former screenwriter who crushed the dialogue in the first book, and gave the showrunners a couple of solid sequels in terms of plot and character to work with. This project can work in the sense that they at least have the rights to the appendices. Shadow of Mordor is a good game that tells a quality original story in the universe. It's going to feel very weird if they go the woke route, as Tolkien was very Catholic and that fact pervades his work. I would also be a lot more excited about, say, seeing Feanor tell Morgoth off than I am about another version of the Celebrimbor story.