Wow, Formy! I think you've done the most to explicate the differences I see. In my struggle to try to identify the differences, I have given them the opposite epithets from Tolkien's original names. I'm likely to be wrong in my epithets, but not in what I notice. I think it boils down to this: I like best Tolkien's evocation of the old European wizard (whether Celtic or Germanic or Nordic doesn't matter at all!), and very much appreciate Gandalf in all of Tolkien's evocations. Regardless of how infrequently Tolkien refers to Gandalf as Olorin, he did so; it was part of his milieu as published.
I do find it interesting and somehow informative (of what, I'm not sure yet) that Gandalf is an unfallen Maiar whereas Merlin is a demon-spawn: Tolkien has scrubbed his wizard clean of all the nasty origin.
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