[Ibrîniðilpathânezel]

I do think you have a point, Morthoron. Gandalf does say, "Here in Rivendell there live still some of his [Sauron's] chief foes: the Elven-wise, lords of the Eldar from beyond the furthest seas. They do not fear the Ringwraiths, for those who have dwelt in the Blessed Realm live at once in both worlds, and against both the Seen and the Unseen they have great power." Tolkien does indicate that those Elves who were born in the Bliss of Valinor and saw the light of the Two Trees are greater in power than those who did not. If they are counted among the chief foes of Sauron, a Maia greater than any of the Balrogs, then they would also have an edge against those lesser followers of Morgoth. I don't think that anyone denies the courage and physical prowess of the Dwarves, especially since Aule made them able to bear great hardships, but there must be some reason that the entire population of Khazad-dum could not defeat the Balrog when it was alone, without other forces to back it up. The common denominator among those who did succeed in defeating a Balrog (aside from dying in the process) does appear to be some kind of higher "magic" inherent in the being who opposes it. As valiant as the Dwarves might be, they simply didn't have that edge.