[Andsigil]

Good question.

None of this is canon; just some semi-educated w.a.g.-ing on my part, but I've always had the impression that Middle Earth was a world born of immense magical energy that depleted slowly over the eons.

The most powerful dwarves, men, and elves were always the oldest. This is especially true of the elves who were either old enough to have seen the light of Valinor, and/or those of the oldest and most distinguished lineages. Galadriel was the last of the elves in the 3rd age, for example, who saw Valinor, and she remained the most powerful because of it.

Celebrimbor, though born in Middle Earth, was nonetheless the grandson of Feanor, the greatest elven smith and the son of Curufin, the son most like Feanor. "Feanor" meant "spirit of fire"and was written in a way (at least to me) which gave the impression that he radiated inner energy and power. That light was barely dimmed in his grandson.

Compare Feanor's creation, imbued(?) with his inner power and energy: the Silmarils. They were Valar-level and world-changing relics. Similarly, the Three Rings were Celebrimbor's creation, imbued with his inner power and energy. They, too were world-changing relics, but for all their greatness, they were slightly more modest (Maiar-level if you will?) in their power.

I hope I was able to articulate my version of all this with at least a modicum of acceptability.

Cheers.

Addendum: This depletion of power over generations is not in a straight line, but more of a trend. Much as the stock market has peaks and valleys, while overall going up over the decades, so does the inherited power of ME heroes have peaks and valleys while going down. This explains why, for example, Aragorn could hold his own with the heroes of old (the quote or quotes on this escape me, sorry) despite being around at the advent of the Fourth Age.