I've alway's felt the staves to be symbolic. Though the Istari could use them to channel energy in focused manner as needed. Which makes them a tool, not an object of power, and therefore easily replaceable.
Recall from LOTR and the Hobbit, that Gandalf used a sword in combat when the need arose, and could have used the staff as an offhand weapon and a shield (to parry with), though JRRT omit's the staff's where abouts when Gandalf was a sword swingin'.
I believe that JRRT's image of the archetypical wizard included the possesion of a staff, and therefore the Istari were so equipped.
The thought of Iluvatar or the Valar imbueing a staff with powers doesn't sound right. It seems that it was the Noldor and Numenorians who were into imbuing special qualities into their goods and crafts, with the exception of Sauron and the Ring.
[ June 09, 2002: Message edited by: Tarthang ]
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