If you listen to the Director's commentary you'll find that both reasons went into the decision to cut Glorfindel. Jackson was concerned with trying to introduce too many characters, i.e. Gil-Galad, Glorfindel, and he needed a way to introduce Arwen because she is the reason Aragorn is doing the things he is doing.
Huh? Aragorn does the things he does so that Evil will not triumph over Good. Jackson seems to be incapable of allowing this theme to be the underlying principle.
Why does Jackson have Aragorn convince Theoden to ride out rather then cower in some caves when the battle looks to be lost? Thanks to Gandalf's earlier intervention, Theoden doesn't need to be told how to act. Why could Jackson not depict Theoden be the valiant, courageous leader that Tolkien produced? Because Jackson doesn't want Theoden to be seen that way. God forbid we should have too many decent men in one movie.