Both Glorfindel and the Balrog fell to thier deaths, but it protected the retreaty people of Gondolin.
Almost all the elves were reicarnated by the Valar, in the Sil it talks of how some must wait longer than others, namely Feanor and his 7 sons. Some, like Fingolfin didnt wait very long at all.
Glorfindel was obviously not tired of Middle Earth yet, so he returned.
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"Understanding your people paves the road to understanding leadership"- Old Atreides maxim
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