[Galorme]

She wouldn't have faded. There are two types of Fading for the elves, one is the metaphorical sense that the elves are fading, in that there are less of them and they are leaving. There is also the literal Fading of the elves, where their spirits consume them after many long ages (but that's way past the Third age, into the umpteenth age probably), but this doesn't seem to happen in Aman, where the corruption of Morgoth is stayed.

The thing you have to accept was that Death was not a great evil, not untainted. Even the great Valar envied passing on in peace and glory, the death Aragorn experienced. The ability to be unbound to the earth, to learn about and love new things beyond the spares of Eä is a wonderful thing that the Elves never experienced. Their immortality was not a thing as such, merely the lack of the gift to leave the world: men had something the elves did not. The only time when men began to envy the elves was when the curses and corruption of the Dark Powers began to effect them, when the gift of Eru was shrouded in fear of uncertainty, fear of leaving the world they know and love. Remember Elros choose to be mortal because he felt inside he was a man, and that it was not his destiny to live forever among the Elves. Arwen had a difficult choice even if Aragorn was discounted, and the fact that she would have Aragorn to pass away with topped the scales. So yeah I think she made the right choice.