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Certainly Morgoth himself seems to have harboured some illicit thoughts when Luthien was dancing before him.
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There is a difference between thought and action. Morgoth would not have been able to successfully mate with Luthien, nor, for that matter, with any other being in Arda. I believe the Balrogs probably fall under the same category, being inherently corrupt and also having origins as demigods, of whom there is no record of successful procreation.