I get that his “mission” is to be more of a guide, sort of to aid men, elves, other races to be victorious in their fight against evil, the forces of Sauron and Morgoth, but why should that mean he can’t use his power to sway the tide more?

From memory, the only uses of his power are when he releases Eomer from Sauruman’s curse/sickness/whatever, when he shines a big light on the Nazgul that are picking off the retreating Gondor soldiers, when he tells the Balrog it shall not pass, and when he tells Sauruman his staff is broken (obviously in no particular order).

He also gets his ass handed to him and very nearly killed by the witch king, when he should absolutely out rank him in power scaling as an Istari, putting him amongst the balrogs and if I remember correctly even Sauron. Why would he never use his magic to set the witch king on fire and zap him out of existence, or pulverise a troll, or something like that? Would Eru consider that unfair? But that doesn’t seem consistent since Manwe gets involved with the eagles here and there?

Does he not possess the offensive abilities I described? Or is it simply that it wouldn’t make a good story