I've always loved Elves mainly because they are arrogant better-than-thou super-perfect.
I got into fantasy - like, really into it - by reading Lord of the Rings after the first movie came out and introduced me to the genre proper (before that I only lightly touched on fantasy through games like WarCraft II, Diablo II and Heroes of Might and Magic III and was much more of a sci-fi kid) and I really always felt that the Elves in that setting were... Well, "right". Everything about them clicked and seemed to really make sense.
They are percieved as arrogant because they ARE better than humans, they are smarter, more beautiful, more magically powerful, live for thousands of years. With well-written characters you can have them come across as interesting despite the lack of obvious flaws and their exaggarated traits. The Silmarillion is just amazing in the first section when it deals with the dawn of Elves and the coming of war over the Silmarils.
It really needs to be handled carefully not to make the arrogant better-than-thou attitude be really grating and obnoxious, which is probably to blame for why people out-of-universe dislike Elves to begin with.
I'm a big fan of the Draenei in WarCraft and the Asari in Mass Effect who are both pretty much just space Elves (to an extent, the same applies to the Protoss of StarCraft and the Vulcans in Star Trek), because in the hands of good writers they provide such a stark contrast to the "down and gritty" setup that the more "Human-like" races tend to have.