If it's about fighting a common enemy, why are the elves bravely running away? They leave it up to man and hobbits. And the dwarves have to deal with the ancient evil down in Khazad Dum and the goblins.
The elves are doing what exactly? Other than running away?
The last time the elves kicked butt was in the Last Alliance. Since then they've turned into crying babies.
And what mistake did hobbits make? The three final ring bearers were hobbits. Only one went nuts. It was a hobbit that carried the ring from the Shire to Mount Doom. Not an elf. Not a man. Not a dwarf. It was men who stood against Sauron, fought and died. Not elves. Not dwarves. It's dwarves who have to deal with the goblins and other evil underground. Not elves.
So what are elves doing except running away, singing and being utterly useless?
They even had the ring in their hands after Sauron was taken out. Elrond could have ended it all at the cost of the life of a human king who was doomed anyone once he kept the ring.
But Elrond walked away. He did nothing. The ring got lost and Elrond did nothing. The ring returned, was brought to Rivendell and Elrond did... nothing. The elves did nothing. They were too busy running away.
So they've been around for a while, they're old and wise and graceful, we get all that. But ultimately... given how powerful and wise and whatever else they are... they're amazingly useless.
“A man can never have too much red wine, too many books, or too much ammunition”