I can only state my opinion as a reader on this one--I generally don't get into elves and dwarves and orcs. I don't see anything fresh or innovative being done there. It seems to me we've seen such a glut of these beings that they've lost their magic. Back in times of old, elves were elusive, enigmatic--sometimes terrifying. Today, they're humans with pointy ears and refined speech. Whatever you decide to do, I think it's important your races come across as truly alien, nearly unknowable. They don't merely have a different culture--they are a different species altogether. One thing you might consider is reading up on non-Western mythology. I don't know what they were smoking over there, but it made for great stories. The Obakemono Project, http://www.obakemono.com/introduction.php, is a good resource for crazy freaky monster fun.
Yeah, I know what you mean. One of the races I made is based on the Maori people of New Zealand, as the race I made are sea-farers. However, physically, you could say they look like a cross between Stitch and a sprite.