So, here's the thing; are elves differnt than the normal singular that represents them elf. Isnt an Elf the slave labour Santa relies on, and an Elve the graceful archers? It just seems that the words are a little out-of date...or am I behind the times?
No. Elf= Singular of any kind of elf, period. Elves= Plural of any kind of elf. Yay for J.R.R. Tolkien and his laying of the fantasy language.
I'd go with elf and elves if I were you, because it's pretty standard and shouldn't jump out at anyone. You are the writer, however, and if you have a reason from deviating, do. - FoY
Most writers only use the term to describe the race that they want it to describe. The thing is, since all elves are fictional, the term has no fixed meaning. Both little people that craft presents and tall archers are elves. Maybe you should think of "elf" as "magical humanoid." That description covers both races that you've described.