So yes, make some tweaks so we definitely have some stereotypical elves and dwarves and gnomes, but don't necessarily take away from what we already have. That's all I'm saying.
Character examples that stand out - in and of themselves - aren't automatically detrimental to immersion. That said, "standard", "baseline" and "average" are less negative than "stereotype", yes? I think most people agree that a starting point/common ground when it comes to basic racial characteristics is fine. Otherwise, what makes x race x race (especially when it comes to a given franchise)?