Galadriel LR definitely is a broken card, it's just that Decipher was late to the party. However, as things stand now, she is a perfectly valid card in the Movie format. Given that, the people who play the Movie format should announce their wish not to play against a
Galadriel LR deck, or any deck they consider a NPE (which it may or may not be). As for myself, when she came out with
Mount Doom, I preemptively made a therapeutic Gandalf-Elf deck, where I burn
Galadriel LR with
Saved From the Fire at the first opportunity. That's how I learned to stop worrying and loved the
LR.
While I am loathe to introduce too many changes into existing formats up to The Hunters expansion, introducing a custom format based on the movie format, with the X-list changes introduced by the Shadows (with exception of site manipulation / use cards which are overpowered only in post-movie formats) would be a good idea (in practice, I think that
Galadriel LR and
Legolas DH would be only x-listed cards).
I feel the need to comment on radry's post: there is a huge difference between a zero cost permanent like Galadriel and high cost events (one of which usually needs a combo to work), not to mention that
LR works both on conditions and possessions and sets up
Cirdan as well.
Alternatively, errata could be pursued, but playtesting is needed to find a proper balance. For example:
At the start of the fellowhip phase, you may exert Galadriel and remove an (Elf) event from the game to discard a condition or a possession.