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YEAH! It was still alive when it fell, because it grabbed Glorfindel's hair as it went, taking him with it. Glorfindel's Balrog was in peak condition. Should have been nothing wrong with its wings - so why did it fall?
Sorry, still haven't read the Syl yet, so I have no aswer for this one (can't seem to get by the first part.......so boring)

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If the Moria Balrog had wings, but the muscles had atrophied, wouldn't the wings be dragging on the floor? not spreading from wall to wall?
Not necessarily. There is a difference between having enough muscles to spread your wings and have enough muscles to actually lift such a heavy weight from the floor.
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If it could spread its wings, it could surely use them to slow its decent. Since it in fact probably hit the bottom before Gandalf (cushioning the wizard), it seems to have fallen rather quickly, given its size and weight relative to Gandalf's (that was what I was asking Grondy, does the theory that large heavy objects fall faster than smaller, lighter ones hold true? I know nothing of science and engineering).
The Balrog fell like a stone. No wings, else it would have been slower.
If the law of gravity also applies to ME, yes a heavy object would fall faster than a light object.
About the wings slowing the Balrog down, mmm..... it depends on how it is falling I guess.
Possibility 1: he is falling horizontalyIn the best case he is falling faced down and with his body in a right angle with the length of the chasm, so that there is room enough to spread his wings and the wings can catch air. In that case you can expect the wings to slow down his fall. With his body in the same position, but faced upwards, the wings would also catch air, but it wouldn't be so effective.
If his body is situated parallel with the length of the chasm, there wouldn't be enough room to spread his wings, so they wouldn't slow down his fall.
Possibility 2: he is falling verticallyIf he falls with his head down, opening his wings wouldn't matter because they wouldn't catch any air anyway. If he falls with his feet first he might be able to use his wings a bit. But again it is also possible he can't open his wings because the walls are to close to each other.

And what if it depends on the season? Maybe during some seasons they have wings and in other seasons they don't.

Don't take this all too serious. I just couldn't resist writing this. It's so funny when I try to picture all these possibilities in my mind.

Personally, I don't care if it has wings or not. It looks impressive and mysterious and I'm contented with that. I like the mystic around it.