Well, he fervently disliked that it turned 'Hobbit' into 'Hompen', at least ...
As to the British 1st edition copy sold, this was Elaine Griffiths copy, signed with inscription to her, if my memory serves me correctly: 'To the Queen of Hobbits', in Quenya in Tengwar. Given Griffiths' close link to the publication of The Hobbit and the fact that the work has no dedication, this is actually the closest you can get to a dedication copy. No wonder it got that price, it certainly has value over and beyond that of any other signed first edition. (B.t.w., the Swedish copy was also signed and inscribed to Elaine Griffiths)
E: My memory did NOT serve me correctly. That Quenya inscription with "Queen of Hobbits" (something like 'Elainen tarin Periandion') came from somewhere else, not from the Hobbit-copy sold. It still was Tolkien's epithet for Elaine Griffiths, though.