[HerenIstarion]

Deadnight Chanter
Posts: 1483

Insist (but perhaps not specifically say) that the Balrogs are limited to 7 (Gothmog, the Balrog slain by Glorfindel, Durin's Bane, and four others) and implement this strictly and allow no re-embodiments

I vote for number 3

for I really doubt that Morgoth was able to:

created new Balrog bodies to make up the number

But there is still:

Silm77
For of the Maiar many were drawn to his splendour in the days of his greatness, and remained in that allegiance down into his darkness; and others he corrupted afterwards to his service with lies and treacherous gifts. Dreadful among these spirits were the Valaraukar, the scourges of fire that in Middle-earth were called the Balrogs, demons of terror.

That leaves us with Sauron + 7 balrogs + many other corrupted maiar. Let me recollect - one inhabits Carcharoth, several others are incarnated goblin chieftains (Boldog), few may be counted among those who assailed the moon (yet with round earth concept they must be omitted). Is this many? Or must be numbers of corrupted maiar reduced from many to several?