I have been playing LOTRO for around 4 years now and still get a lot of enjoyment out of the game. There has been some great content released for it and the F2P model means you can pick it up and leave it as you see fit. The game is a little bit stale at the moment but that is pretty normal before an updated is released so I expect things to pick up when Rohan and mounted combat are released in just over a months time.
While you have to pay for the expansions, what you are essentially paying for is the quest packs. the landscape and corresponfding epic book (story) quests are free so you can roam anywhere you want providing you are of appropriate level. I think the starter areas, Bree and lonelands are all free now so getting to L30 without paying a penny is possible. After that I expect if you bought Evendim (L30-L40) and forochel (L40-L50) you could probabaly get through to Moria (start at L50) for very little cost. FYI you earn ingame currency as you quest and complete deeds which would go someway to unlocking the quest packs.
Would i recommend LOTRO? Well, it depends what you are after, if you enjoy quest driven MMOs and enjoy great visuals and lots of zones to explore then you will probably like LOTRO. The game is very solo friendly these days with most of the population now at level cap a few of the zones have been revamped with the group quests turned in to things that can be done solo. Likewise, the epic quests which often needed full fellowship (6 player) groups in order to complete have also been given a solo option. On the whole this is probably a good thing, becuase finding group for lower level content is always difficult with a game that is over 5 years old. Instances and skirmishes (scalable group content) are still available to do as you level if you want to do some grouping with other players.
While the game is gettining some nice updates with Rohan and still looks good graphically, it is starting to show its age a bit, especially when compared to new kids on the block such as GW2. That said the community is generally very good, the story is pretty enjoyable and overall the game does have a certain charm and character that has kept me coming back for more.