I've used the different lifespans in two different ways. In After the Overrunning, the elves, as near-fey, were charged by the faeries with keeping the other races in check. Then the faeries got pissed off and took over the whole place. Now it's a couple elven generations later, so many of the elves have personally talked with people who saw the time before the Overrunning. But the rest of the races are at least ten generations, and in some cases closer to a hundred, removed from the old world. [Keep in mind, this is using AD&D1 lifespans, so elves live 2000-3000 years, and even dwarves only live a couple hundred.] So for the humans and goblins and gnomes and orcs and so on, the time before the faeries is mythic time, while for the elves, it's recent history. Means that the "wise elves" can pretty much shape the past as they want, and are doing so to help foment rebellion. Also means that the elves are the most vehement supporters of the underground, because (1) they truly remember how it used to be, and (2) they feel like they lost the most when the faeries "betrayed" them.
Similarly, in my SpellJammer campaign, i took the concept, often mentioned in history, and especially history of science, research, that what it takes for a truly radical shift is for all the old proponents to die off. So while the orcs actually have more-or-less reformed in response to the Unhuman War of a couple hundred years ago (the most militant died in the war, plus they were soundly trounced, which combines to produce a general shift in cultural attitudes), the elves are still stuck on old attitudes, and can't recognize this cultural shift.
In my old homebrew, Back In The Day, i assumed more typical racial relations, so the only thing that came out of the long lifespans of elves, dragons, and kobolds [hey, they're reptiles, right? so, if they miraculously avoid traumatic death, they can live a *long* time.] was longer-lived ancient empires in the campaign's background history. Think of it like this: we've had several century+ empires in the real world (British, Holy Roman, Austro-Hungarian, USian, Malian, to start with), where generation time is (or, at least, was) well under 20 years, and lifespans were on the order of 50-60yrs. And then there's the Roman Empire, Ottoman Empire, Dynastic Egypt, Dynastic China, Mayans, Incas, and ancient empires in India and Africa whose names i'm blanking on at the moment. Several of these lasted 500+ years. So that's something like 10+ lifespans, or 25+ generations. Apply to elven lifespans, and you get an empire that's stable for at least several thousand years. Apply it to dragons, and you might have a stable government that lasted hundreds of thousands of years.
For my campaign, i addressed the issue of progress in two ways. First, some of the governing forces would've worked actively against technological development, because it brings power to the people. Second, in a world with ubiquitous magic, there's less incentive to develop technological solutions to problems. Just as, in our own world, there's not much impetus for hydrogen-powered cars, and if they do get developed they're going to initially be seen as vastly inferior to gas-powered cars, because of the established infrastructure for gas-powered cars (gas stations, service stations, etc.). If there isn't a problem, putting up with the initial poor solutions [that primitive technology provide] isn't worth it. And, of course, add the occasional mythic-level upheaval to set progress back hundreds or thousands of years (this is fantasy, after all), and a little bit of hand-waving, and there wasn't nearly as much progress in my fantasy world as in the real world over similar timespans. [On the other hand, animal life is a product of "progress"--an invention, really--of one of teh oldest civilization, back when there were only plants. Magic-use and the elemental planes are also inventions in that setting.] Though i did use evolution to some degree: some races were divinely created, but others were natural evolutions from those. Frex, humans are the result of elf-dwarf crossbreeding in the distant past.