Heh, I remember reading your description of Elves in the PHB and DMG back in the day and thinking, "Hey, that's not right!" Even by the time I was, oh, 10 or 11 JRRT's description of Elves had really influenced my take on them as a race. The differences between JRRT's elves and D&D elves can be seen rather clearly, I think, in the instance of the Grugach!. I don't think Tolkien would ever have described his elves like that. As for appealing to his fans (of which I am one) I do like the HIgh Elf, Grey Elf, Wood Elf distinctions (although Wood Elves are probably my favorite in D&D). I found the additions of Aquatic Elves and Valley Elves (which make an appearance in my homebrew world, too) to be pretty cool.