So,Sauron as kind of Gandalf ? it could work.
In the celestial pecking order, Sauron is two steps removed from God himself. Her served directly to big boss' chief lieutenant. He is more powerful than Gandalf. Gandalf was limited in his actions by the virtue of being relatively small, relatively fragile and relatively powerless. Although even Gandalf did not shy away from stabbing people.
Sauron's original goal was to make everything orderly and proper (in his eyes at very least), so he really invested in building an empire, spreading his essence to taint the land and basically opting for more managerial approach. So while his canonical MO is not usually associated with direct confrontations, he is very much capable of that. "Concentrated" Sauron (who is not spreading himself thin to pollute the land with evil) can just roam the earth re-enacting "The Slap: Part 2" until any and all opposition calms their tits - in this world or the next, depending on how durable their chins are. As far as violent conflict resolution department goes, he is kinda OP.
Of course redeemed Sauron's MO depends heavily on how exactly his redemption went down and what the logic behind the process was. It's not important what he is "told" (God knows he is a poster boy for not doing what he was told). It is important what he thinks for himself. If Sauron is just tired of fighting obviously hopeless battle against God, it's one thing. If Sauron has gained appreciation for chaotic nature of God's creation, that's another. If Sauron still very much persists in his desire for order, just re-considers his previous methods, that's another one still.
As a result, you can get a number of possible re-interpretations.
- an explorer Sauron: he travels the world in search of understanding, contacting all sorts of people, trying to comprehend their views, their culture, their religion.
- a roaming knight Sauron: an angel of the Lord that aspires to change the world by simply wandering the earth, fighting evil one small battle at a time, adjucating here, teaching the truth and useful skills there. He obviously becomes a sort of deity/legend for the Freefolk
- a relaxed Sauron: the air is filled with blaze and weed, as Sauron enjoys God's creation as it comes to him without trying to impose his will upon it.
- a hegemonic Sauron: still very much an empire-builder, he schemes, cajoles and persuades to get people to do what he thinks is right. After all, his original empire was very heterogeneous - between Ork tribes, Trolls and different human nations - so Free Folk's diversity is hardly an insurmountable challenge. Granted, there probably will be a lot less murder and slavery involved, but political puppeteering is still on the menu.