I think the problem is that instead of elves and dwarfs having their own languages, cultures, histories, and customs, they’re reduced to stereotypes focusing on body type and accent (posh english elves and scottish dwarves). It’s the D&D-ification of Tolkien’s world.

That being said, I think a bigger problem is the Americanization of fantasy races, perhaps best exemplified by people saying orcs aren’t evil. In Europe, Asia, Africa, etc. each country has its own people with its own culture, humor, history, customs, beliefs. Sometimes these conflicts are quite different and lead to war. In America, regardless of your ancestry, you’re an American with the same language, culture, baseline. So Americanized fantasy believes everyone LOOKS different but IS the same, barring accent and personality. Tolkien, being European and having lived through the Great War, understood that different peoples can have extremely different values, beliefs, and cultures, and be willing to kill millions to be proven right.

An orc is maybe not evil to another orc, but that’s semantics to the hobbit who’s village he just razed.