Elves are one cohort of elementals which comprise a group of beings existing in a higher vibrational dimension, but within the earth plane and are out and about on the Earth’s surface and sometimes above and below, depending on the particular being and its current activities. These were created to be integral with Gaia, in part as a stand-in for humanity, to have other forms of consciousness present to provide an interplay. This, in a sense, keeps Gaia happy and busy through an interplay of energies, as is true of all life forms present. The elementals enjoy a higher state of consciousness than the physical matter comprising the Earth itself and thus is a source of interest and a kind of reward. Just as with human beings, the Earth likes and enjoys its companions as long as there is a respectful partnership and not a harmful exploitation or attack energetically launched by the inhabitants.
The elves are, indeed, small in stature and can appear in a visible form to humans by attuning their energy in a way to facilitate that human experience. They can be perceived by intuitives much more readily, and what intuitives see is their inherent essence and makeup to have a particular characteristic form and appearance that is fairly accurately described in your account you quoted. All of the elementals in one way or another are stewards of the Earth and all of its makeup to varying degrees and with varying roles from time to time in how they might go about this. But they are independent beings and even though are in spirit form, are unique and different from the spirits you typically think of, which are a higher vibrational essence of the soul leaving a physical body in the case of human spirits endeavoring to return to the light in between incarnations, or in the case of the angelics, do inhabit the ether in a vibrational state that is invisible to human, and although they are soul-based, typically do not incarnate in physical form.
The elves are physical beings but high enough vibrationally are invisible, too, with human sight under normal circumstances. They enjoy a measure of independent living and have an agenda that serves them because they are created to be in tune with nature and so this is a win-win—what pleases them will be good for nature and vice versa. This is different than other physical beings you encounter more frequently, as physical humans or extraterrestrials, and is true of some of the spirits as well. Because of their independence, elves can decide on an action that serves them, at least they believe will do so, at the expense of a human they are interacting with. This is no different than humans jockeying for position in some cases, ownership of property, or at least being present first in a particular location in nature and then resenting any intrusion by someone else wanting to perhaps displace them. Because these are relatively primitive beings, they are more like animals in the sense of reacting to inner instincts, drives, and interests, and have an innate alignment to serve their own needs in order to promote their own survival. This is what can sometimes cause an interference or disagreement with human occupants of the planet and lead to mischief.
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