It's not just about having the power...

[Legate of Amon Lanc]

Originally Posted by Morthoron

I think Saruman did indeed overpower Gandalf at Orthanc (although perhaps not as dramatically as the "Star Wars with Staffs" sequence in the movie). The reason I believe this is that when Gandalf defeated the Balrog and died, he was ressurrected into 'white' status, and his sacrifice was a purification in order to reach that next 'power' level. It would make little sense for Tolkien to write that part of the tale if there was no significance in Gandalf's death and ressurrection.

Well and that's exactly what I think is not right. Not contesting what you said about Gandalf becoming more powerful after his return as the White Rider: it is hinted, at many places, that he has a new "quality" now, however I think we should bear in mind that once again, this "new quality" was not only about more power. He had somewhat different attitude, he learned about something. I would say, the most significant change was in a "spiritual" way. Also, he had far more self-confidence after that, and it seems likely that he consulted (or "was consulted by") the Valar (or Eru?) meanwhile.

However, like I said, I think there was no real confrontation between Gandalf and Saruman. When the negotiations failed, Gandalf stopped, he did not attack - but at the same he did not capitulate, did not submit, did not do what Saruman wanted from him. I believe Gandalf didn't try to use power to contest Saruman there. In PJ's movie, the one who starts the "duel" is Saruman, because he becomes angry. But in the books, there was no reason for him to become angry to attack Gandalf - it says he was "cold and perilous". He was "cold", he was aware of his superiority at the moment, so he just sent the guards to escort Gandalf to the top. Saruman wouldn't have started anything. So, the only one who could have tried to use his power to get away would be Gandalf then. Gandalf the aggressor? And that's what I believe he won't do. Exactly as alatar says - I may just quote here:

Originally Posted by alatar

I think that Gandalf felt this way. He could have fought Saruman, but he didn't want to start a fight which, even if he won, would only have resulted in the destruction of his foe, and I don't think that he wanted that. Even at the end he wished that Saruman found healing, and it may be that he felt the same about Sauron.

Also, what supports the theory that nothing happened besides the dialogue, book-wise, is what we can read. The only description after the end of dialogue, when Saruman laughed, is:

Originally Posted by Council of Elrond

They took me and they set me alone on the pinnacle of Orthanc, in the place where Saruman was accustomed to watch the stars.

I believe, if it were as Morthoron says, that there would have been at least one more sentence, at least brief, like "I made a vein attempt to escape, but alas, Saruman proved mightier still." But there's nothing like that.