The latter notably happens to the Elf-lord Glorfindel, who honorably dies in battle with a balrog in the First Age and is sent back with a new body to fight against Sauron at a later date.
In The Lord of the Rings and most other fantasy stories that followed Elves and Dwarves are portrayed as opposites. In terms of appearance, Elves are usually tall, thin, and clean-shaven ...