Samwise, my instinctive reaction is the same as yours. It was the energy conservation thing that got me thinking.
And actually, elves having houses in the trees was really the exception to the "rule"-- Lorien only, started by Amroth. The early Elves that settled in Beleriand all hired dwarves to dig caves for them. Same with Thranduil... caves.
Seems kinda odd and un-"elvish", doesn't it? Which goes to show how much of an imprint the Lorien elves have made on our collective mind.
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...down to the water to see the elves dance and sing upon the midsummer's eve.
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