Sauron with the ring was still extremely powerful. I recall someone saying in LOTR (possibly Gandalf) that if he regained the ring his victory would be "swift and complete".
Morgoth lost some of his power because he drained himself on things like Ungoliant, dragons, and so on.
I don't recall reading that their diminished power had anything to do with them being evil.
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I used to be indecisive. Now, I'm not so sure.
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