I mean, sure...mythologically-speaking, yeah, I'd agree with you. I picture the Balrog as made of shadows, smoke, and fire - but solid more or less - a being discernible, but barely, in shape. I think it has a shroud of darkness that might house wings, and I picture it more humanoid than the Jackson or Bakshi versions portrayed.
That said, Tolkien was vague in his description and the beast might have been "man-shaped" as in "humanoid", which might or might not apply to height. A cyclops in Greek myth might be 25-30 feet tall, but still could be considered "man-shaped". The Balrog might or might not have wings, and might have varying degrees of fire and shadows and whatnot. The whip and sword are clearly stated, but aside from those, it's artistic license time!
As for the film, I think Jackson needed a shorthand way to show the audience what kind of threat this creature was and couldn't count on the audience knowing the lore of Tolkien backwards and forwards. If a two metre high guy in spiky armour with smoke and fire around him showed up, people might think, "cool". If a two or three storey monster shows up with a skeletal-beast head and giant wings, people think, "uh-oh". And, thanks to the wings and fire and the exact inspiration on the head, they also think, "that's a demon from Hell," and that's what Jackson needed. He needed a big, firey climactic midpoint to make us believe that they were in t-r-o-u-b-l-e, and that's what he did.
So, from a lore stance, maybe not the best, most "accurate" portrait (even if that's a vaguery itself), but from a filmmaking perspective, I think he hit the nail more or less on the head.
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