Thay go over the sea to be at peace. Yes thay are very powerful but have been in Middle Earth for 1000s of years. Thay tire of the place and want eternal bliss and that is what they get when then go over the sea. The reason thay dont get more involved is that thay are elves and have been involved with war and death long befor men and thay tire of that.
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Not all who wander are lost.
-Tolkien
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