In real life it's dwarfs and elfs but in Tolkien's it's dwarves and elves.
Anyway, I'm a big Tolkien fan, and have read everything published by his estate, and I have to say I'm really excited about the movie. I think Jackson has it under control just like he did Lord of the Rings.
I think the dwarves look great, Fili and Kili not excluded (they have to have someone for girls to put posters of in their rooms!). I think, being a visual version of the book, the different dwarves will actually stand out better, and be more recognizable as their individual characters rather that just 'one of the dwarves'.
Sure, there are going to be differences, and they will piss people off (skyjedi). But when making a movie based on such a rich and detailed book there's only so much justice that can be done without making a seven hour movie that no one wants to sit through.
The important thing is that the people making the movie (Jackson, his team, Weta digital, etc.) really care about the source material. They're all huge fans of Tolkien, and I think that's key in making a quality representation of his book.