A hero that can't do **** by herself. Wow...
Wait, so drawing a card and lowering your threat by 1 is nothing? Also, being able to get double use out of allies the round they come into play seems pretty good. Just think about that with Core Set Gandalf - ridiculous!
Spirit has not had consistent card drawing until now, so I think Galadriel is amazingly powerful. As Ian said, once you get Nenya and some readying (UC, Miruvor, etc.) she becomes a real powerhouse. In multiplayer she is even better because she can target a Tactics player, who would ordinarily lack both card draw and threat reduction. I just don't see how targeted card draw *and* threat reduction in the same ability counts as nothing, but I am interested to hear your take.
OK, here is my take:
Allowing allies to quest without exhausting first turn they enter is good, but not so many allies can do anything besides questing, especially Spirit allies.
One of the main roles of the heroes is being a front line, and she can't quest, attack or defend, so if you don't draw anything for her in your opening hand - you're out of luck and two other heroes better be able to handle the questing and fighting to be done.
I think the proper response is "wow, she'd be great... in any other Sphere." She's a really good card, but boring old Eowyn is generally better in my opinion, and she can't compete with the ever-broken Glorfindel. In any other faction, I would love her, but here it's pretty meh.
She splashes... okayish. Going off blue means that you'll likely lose a lot of the questing advantage as your allies will cost 2-3 and often have 1 or 0 willpower, which is nice but not amazing given her weaknesses. As a standalone deck, she would work best with Grima to power out worthwhile cards and manage threat. As a support deck, I could see her and 2x Tactics heroes, where they are dedicated combat and she just manages their threat and draws cards, while providing cheap Spirit cards. You'd lose out on most of the questing advantage, but it'd probably be worth it (so long as the other decks can pick up the slack).