[Lalwendë]

In the corrupted world that they lived in the Elves couldn't make a Utopian society as they were constantly beleagured and/or in conflict.

The Calaquendi and Moriquendi were deeply suspicious of each other, certainly in Beleriand. I think this is certainly understandable on the side of those Elves who had remained in Middle-earth as the return of the Noldor also brought with it the return of Morgoth and war. While the Noldor seem to feel they cannot always trust the Elves who have stayed. Even amongst the Noldor there is an incredible amount of hatred.

All of the Elves were subject to constant war, and this resulted in insular communities such as Lothlorien. I wonder just how Utopian a society could be if it was in a constant state of siege and defence. Freedoms must have been restricted to a great degree.

I also think that Elves would not necessarily have developed their Art to its full potential, especially as the Third Age came around. Less Elves were being born, and hence new creative minds were not coming into being, and some great minds must have departed Middle-earth for good. The Elves were also mixing less with other races and cultures and so their Art would not be absorbing and working with those influences. Maybe they were developing a particular Elven Art to a high degree, but I wonder just how good that could be without new ideas to work upon? That's a question relevant to our world too!