[burrahobbit]

Contrast the lifestyles of the Elves of Aman, Nargothrond, and Mirkwood. In Aman they all live like kings in big awesome houses etc. Then Nargothrond, a big fancy cave kingdom. Not quite as nice as Aman, but still pretty fancy. Mirkwood doesn't sound quite so elegant, what with elves passing out in the wine cellar, all drunk as can be. Etc etc on down the years they become less like kings and more like country folk.

It's aso important to keep in mind that Tolkien does not view being rustic as a bad thing. He himself refered to the Gaffer as rustic, while he is clearly someone to be respected for just that reason.