I think that is fine if they are less "beautiful" by conventional Earthling standards. After all, there is a reason that western and eastern cultures have different ideas of what is considered "beautiful". Why should Faerunian beauty conform to what we consider "beautiful".
Because most people want beautiful elves, not alien elves?
And Faerun standards are irrelevant, elves should appear beautiful to us. I mean, I can go and say that the Xenomorphs and facehuggers from Aliens are beautiful by their own standards, but they are ugly and I'd never want to play as one, period.