[quote]Gandalf killed Durin's Bane.[/quote]
His physical form if I recall correctly. Their spirit/essence etc. doesn't die. They're on the same tier as Gandalf, whose physical form died but spirit went to that place he originated from, but the powers that be determined he wasn't finished yet and sent him back.
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Yes, but it is irrelevant to make a distinction between the two. Essentially, Durin's Bane was killed.