High Elves and the Balrogs

[obloquy]

Originally Posted by Raynor

I don't think he had any reason to keep his embodied, severely limiting form, other than sentimental reasons

The Valar may have been able to restore Olorin, but it's likely that he had many years of recuperation in Aman ahead of him after separating from his corporeal form. He may not have had much reason to remain incarnate, but the return to his natural form was no small thing.