Rockwell has since been confirmed as Hammer. When talking to MTV, Rockwell addressed the age difference.
They wanted to go with a rival for Tony Stark who is closer to his age, and make him American.
When shown an actual comic appearance of Hammer, Rockwell commented that it looked more like Jeremy Irons.
I guess they couldn’t get Jeremy Irons for it.
This goes back to the debate on changing characters for movies. Obviously this isn't the same as changing Deadpool or (spoiler) making Emma Frost as Silver Fox's sister. It makes sense that Favreau would want a younger business rival for Stark. Obadiah Stane is out of the picture. Mandarin may appear later (in Iron Man 3). A generic character could have been created but since it's a lesser known character like Justin Hammer, I suppose we can overlook it.
How do you feel about Rockwell as Justin Hammer? Tony Stark is going to be pretty busy in the next movie.
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