The elves are immortal, ancient and powerful, yes, but they are also on their way out. Their part in the story is done. They aren't as dynamic as humans, and their long lifespans tend to make them melancholic and fatalistic. The fash see themselves reflected more in the plucky upstart humans. Of all the things in Tolkien they probably see themselves as Numenoreans
Even in most fantasy stuff derived from Tolkien elves are depicted as a diminished or even straight up fallen race who are depicted as haughty, arrogant or just racist towards everyone else
The elves are immortal, ancient and powerful, yes, but they are also on their way out. Their part in the story is done. They aren't as dynamic as humans, and their long lifespans tend to make them melancholic and fatalistic. The fash see themselves reflected more in the plucky upstart humans. Of all the things in Tolkien they probably see themselves as Numenoreans
Even in most fantasy stuff derived from Tolkien elves are depicted as a diminished or even straight up fallen race who are depicted as haughty, arrogant or just racist towards everyone else
I think part of it is because elves are seen as effeminate or gay.
The Hobbit movies leaned into this too
https://www.youtube.com/watch?v=iVQtzBTV76Y
I think this was supposed to be right after the scene where the Dwarves are grossed out by the Elves eating nothing but greens