Being the head of the council is not like being the head of the goverment. Gandalf would have time to journey around M-E, anyway. I think the head of the Council would just have the final say on what to do. Hence the Council's inactive stance on Sauron, despite Gandalf's urges, because Saruman kept on over-ruling him.
I think Gandalf's humility stopped him from heading the Council, despite Galadriel's and problably Cirdan's desire to see him head.
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