I don't find the starting position for the Elves particularly difficult. We have excellent Dryads and the ability to quickly acquire good archers. If you play strategically on the battlefield, you can avoid losing anyone, and in this, they are similar to the Elves – it's all about running around the map and occasionally engaging in battles that can last for half an hour. Luck plays a significant role, including the types of neutral creatures you encounter and the second hero you get. If you get Ossir or a hero with Dryads, the start won't be particularly challenging.
Also, like the Demons, the Elves have upgraded creatures that are much stronger than the basic ones. Therefore, we upgrade Fairies to Dryads at the very beginning, and we turn Ballerinas into Wind Dancers because they are actually quite a good unit. And if we also use tactics, we can easily defeat archers.
Yes, towards the end, we upgrade Dryads to Nymphs.
To avoid repeating myself about the upgrades for the Wind Dancers, I suggest you check out the Light Goda topic... All the upgrades and alternative upgrades are listed and discussed there.