She was (is) beautiful - but she wasn't Galadriel. Galadriel should be more mature, more queenly, with more presence, not just simpering about. I think an older actress was needed. But that's not "Hollywood" enough, I suppose. One of the problems with cutting the Scourging of the Shire" was that it also damages the present giving in Lothlorien - to my mind the scene where Galadriel is offered the ring and refuses it is perhaps the finest part of the whole trilogy. Not in the film. (Not in the earlier one, either...)
This is evidence of how tightly plotted the Ring really is - you cannot hack one setpiece away without affecting several other events. Obviously Tolkien was a much better writer than some ciritics allow.