[Nerwen]

GIL-GALAD and DENETHOR are correct, and for the reasons given.

ARIEN is not... quite, though she is involved in the clue. You also have the correct family.

1. Not a chance? Without doubt? That's the spirit! Though a little messed up (like the theme).
GIL-GALAD Fellow of dubious parentage sounds fishy and androgynous. No wonder he took a fall!
3. Despite family woes, she becomes sunny after an internal shakeup.
DENETHOR Confused requirement for a Northern deity results in early victim of internet-induced madness.

Edit: DEAD is not the password but does have some relevance to the theme. The password does not consist of initial letters- should have mentioned that to begin with. The letters do connect, though.