I ask (again) why did Tolkien write the passage with the WK entering the city and confronting Gandalf? To show that the Rohirrim SAVED THE DAY. Not to show that Gandalf could have beaten the WK or vice versa.
In the movie, PJ just takes this a level or two higher (yes, I would have rathered Gandalf not looking so 'fearful', but this was PJ's way of showing that the 'world of men' has not failed, but were about to prevail).
This is EXACTLY what this scene is in the movie AND BOOK for. To highten the tension, to ratchet it up until we hear the horns of the rohirrim who save the day. This scene is not for us to see who would win in a battle between Gandalf and the WK. THAT IS IMMATERIAL TO THE STORY.
We all know that Gandalf WOULD not beat the WK because of the Prophecy. Note, this is not to say he COULD not have beaten, but WOULD not beat the WK. That is left to a hobbit and a woman.
So let's put this question into perspective. To me, it's at the same level of 'My dad's bigger than your dad' or 'Tom's older than Treebeard.'