well, we have tall people, short people, people with broad shoulders, people with big jaws, why not people with pointy ears? All they have to do is wear a hat. In fact, I bet that's why hipsters wear hats and scarves and stuff, they'r hiding pointy ears! But seriously, point ears is plausible, some race of humanoids could have existed with pointy ears at some point, then people decided to breed with with them, or kill them, and flushed out that gene, just like big browed neanderthals went bye bye. If they lived in a time where people made stories and then died out before now, we'd be hearing about 'Mr. Bigbrows' in fairy tails, probably taking on the roll of a grumpy troll or something.
As for dwarves, well I'm pretty sure that came from short people, who were likely outcast-you know, racism, it most likely existed back when the idea came about- and made their own little towns. Isn't there a condition to do with people being short due to their genes with something resembling 'dwarf' in the name? Not sure how this is much of a myth to be honest... Bar the idea of super strength or something, from some stories I've heard; but look at other things in history shrouded in mystery, people make up crazy things about them. Ever heard of ninjas?
The grim reaper is some creepy guy who decided to invent Halloween, but it went horribly wrong so someone else did.
Fairies.... I have no idea, I'd put it down to mushrooms...
But if they existed in all their magical prowess, I'd happily go to live with them, as someone said earlier.
Anyways, dwarves are just short people, elves could have had a gene that makes them have pointy ears -like features found in different ethnic groups that define them-, then the rest was superstition when they cut themselves off or from stories which were exaggerated after the gene disappeared, probably when mother nature realised pointed ears don't really aid hearing and will likely get you killed by the church -back then, that is. That's probably why they disappeared if they ever existed, and since ears don't have bones if we found elf bones we wouldn't know it.
Edited by Trakkia, 23 January 2013 - 03:01 AM.