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As Zil said. Breaking the staff meant breaking Saruman's authority. He still had his physical power (Orthanc), and some of his innate power (his voice, his cunning) - but the latter was deteriorating for quite some time, so he failed to execute his power over Gandalf, Theoden, etc. His voice only convinced those with weaker or more trusting minds, and even then not all.
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You passed from under darkened dome, you enter now the secret land. - Take me to Finrod's fabled home!... ~ Finrod: The Rock Opera
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