I have heard that too, I was reading a story and it was just plain horribe and the girl kept calling the main character a 'she-elf' One of her reviwers wrote that it was an insult to elven women. I don't know, I think it sounds like an insult but I am not sure.
Yes, unfortunalty there are not many good Lord of the Rings fanfictions anymore. There are a couple around still. One fanfiction.net there is one called
Time and Space and also
Carry you home
The first one is about Legolas falling into our time period and being put into a mental hospital (and to my surprise it is not a romance!)
The second one is a little story about Celeborn and Galadriel departing. It features the song Into the West by Annie Lennox.
Hope you read those stories, they are really good (well at least in my opinion) See ya!
