Before we get started, let's set some ground rules. In order to keep things from getting too complicated, we're going to stick to characters within The Lord of the Rings trilogy. We'll generally approach things from Peter Jackson's films, although we'll definitely include the books, as well.
In other words, we won't be bringing in The Hobbit or The Silmarillion characters like Smaug, Iluvatar, or Morgoth. After all, the Valar alone — the "gods" or "angelic beings" that oversee the affairs of Middle-earth — would dominate the entire list, leaving all the better-known cinematic characters off in the weeds.
Finally, we'll only be considering people that play a significant role within the story itself. So characters like Elendil, Gil-galad, and Círdan who show up for a shot or two in Jackson's films won't be included. We also won't dabble with characters like Tom Bombadil or Glorfindel who, while incredibly powerful, were never acknowledged in the cinematic cut (and yes, we're mad about that, too).
Apart from that, it's open season. So, let's see who made the list, shall we?