[Hama]

From what I remember of the appendix, the chief reason Tolkien used Dwarves, Dwarven and Elves and Elven etc was to avoid "Dwarfs" and "Elfin", which he felt were words with inappropriate connotations for the noble races he envisaged.

Also, the Elves name for Gandalf was "Mithrandir", not Gandalf, which was what the humans called him