Very good theories everyone. I myself have always been confused by this. How has Nenya diminished her love for middle-earth when she desired so much to save her realm? Her laments over the loss of her own power to preserve her land contradicts with the supposed joy-diminishing effect of Nenya. If her joy was truly diminished by her ring of power then why does she say the following:
Quote:
Yet I could wish, were it of any avail, that the One Ring had never been wrought, or had remained forever lost. - The Fellowship of the Ring
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Her words above gives me the impression that although Sauron is potent even without the One, she can still defend and maintain Lothlorien for so long as He doesn't obtain it. She's powerful indeed (pupil of Melian who has managed to gaze deeper into the future, perhaps exceeding her tutor).

Perhaps this is another one of Tolkien's inconsistencies (i.e. Celeborn & Amroth's origins)?