I don’t agree with interpretation of the events where Maedhros and Maglor are burned by Silmarils and that makes them realise how evil they really are, which leads to Mae’s suicide and Mags’ exiting the narrative. I mean, I don’t agree with the pious, religious aspect of it.
They already knew they were weren’t good people, closer to monsters than other elves. Maybe they backed back on it a little while raising E&E, or defeating Morgoth gave them some new hope on the matter. Silmarils burning them would be a horrible thing, but... More in a way that they can’t touch their father’s things than being scorned by a holy object?
I mean, they already knew gods didn’t like them, they told them that personally. And we need to remember, Valar were their neighbors in Aman. When they thought “gods”, they were thinking of Orome hunting with Celegorm, Aule hanging out with Mathan and Manwe talking to Finwe (and fucking Morgoth). Their “jewels hollowed by the gods” are not our “jewels hollowed by the gods”. They’re having a property dispute with their gods. Honesty, I think at this point in the game Feanor was more of a holy image to them as we get it than Valar ever were.
DLDR: Silmarils burning them wasn’t a holy punishment, it was Varda calling them a bitch.