Crosmando: Why not? I don't think I've ever seen a video game actually go back to the actual mythological origins of common fantasy tropes. More original than just using the stock standard Elves.
Because dwarves, elves or alike creatures are in almost every role-playing game out there. It's like zombies in action games. If enemies aren't named zombies, they still are there, look and behave like that only with different names and different backstory at times. It won't be a deal breaker yet I hope they won't be there too.
Note: Tha'ts my reason. Maybe XYCat's reasons differ.