I read another review of the series which pointed out something about the elves which I had never thought about.
They are all about suspending change, not going with it. The magic of the rings was used by them as a preservative. Granted that their special enclaves were beautiful but I suspect that the reason JRR doesn't place Galadriel or the lord of Rivendell into the battle is that they are too much pressed with just keeping the status quo at home.
If LOTR brings anything home to me, it is that change is inevitable and thus working to affect the nature of changes is the only good option. This is why the third age ends with the destruction of the ring and why the elves leave. They cannot halt the changes that will come and so they choose to skip out instead.