Hullo, Formendacil!
Nice to know yo uare reading. And thanks for the inputs about fading. Although-- depending on which sections you read, it's the unwilling elves that remained and faded, the willoing elves having gone west; and I recall that Tolkien was of the opinion (where DID I read that? and do I recall correctly?) that the unwilling, faded elves were not the sorts of spirits you would WANT To seek out and indeed would be better off NOT seeking them, becaues they aren't emnlightened elves and are more likely to be dark elves.
Different than Diminish, I think. Diminish I believe means to pass on the rule of Middle-earth to the hands of men, and move on to Whatever Is Next in the west. In the west, Galadriel would not be queen of one of the major realms, or indeed any realm, as far as I can guess. She would just be herself.
Wanna pick up (and wrap up) a character or two...?
You could even write a postscript for Aragorn to enter into the annals of Gondor... to be buried in their dusty library and forgotten?