Elves are cooler than dwarves because they have better magical powers and they are more sociable. Also, the word "dwarf" beings with the consonant cluster "dw". This sounds foreign, and it is not a beautiful word. Elves have a longer history and there are more stories about them. They are more interesting creatures.
Elves are definitely cooler than dwarves, but that predisposes a bias toward humanoid appearance. Dwarves are a bit more alien in nature, whereas elves possess what Westerners would consider the standard of beauty - tall, thin, predominantly white. Elves are sleek and handsome, dwarves are "ugly". As of right now, elves are the superior species, but superiority is only a social construct. Perhaps we should work to change this.
Dwarves are very cool and have awesome beards. They were they were the first species to join Gandalf's crew and desperately wanted to destroy the ring and generally sacrificed everything to rid Middle Earth of the Ring forged by Sauron. (lord of the rings) also elves are cowards and chickened out in the attempt to kill smog
Dwarves are naturally hearty and can take way more of a beating than elves. They have natural resistances to magic & are better craftsmen overall. Additionally dwarves are an older species than elves. In the Lord of the Rings universe dwarves were created before elves. Don't believe me? Read the Silmarillion.