I think there is a lot of cliché and most of it is up to the author. Nothing prevents elves from living in cities and cultivating land as long as there is a sound explanation.
Most humanoid species can live in different kinds of environments, just like humans.
Some fantasy tropes are unrealistic such as advanced civilization living underground (goblins, drarves, drows, others). Living as troglodyte is possible but without proper air circulation, they will suffocate if they are too far from a fresh air source.