That's an interesting theory. And it fits a bit. Considering part of the whole deal with the Elves immortality was that once their physical bodies died they died for good, whereas Men got to live on in the Halls of Mandos (I think).
Men spent some time in Mandos then passed beyond.
Elves spent time in Mandos meditating upon their deeds, good and bad, and once they had repented enough, they were released by reincarnation into identical physical bodies within Valinor. So it's like a combination of Purgatory+Reincarnation.
As far as I am aware, Tolkien dithered on whether only Felagund and Glorfindel among the Exiles were re-embodied, or whether only Feanor was trapped due to Feanor's inability to repent.
In Valinor, it is implied their bodies don't suffer the diminuation they see in Middle Earth.