If there weren't random battles, it wouldn't really be a legitimate final fantasy title. check out the seiken densetsu series for games with zelda-like combat - they're also three-player games if you can find two extra people to play with you. nice!

Elves and dwarves are used so frequently because Tolkien used them, and he's a starting point for a lot of modern fantasy. Most of the authors/game developers that use them do so out of reverence for Tolkien.

I'd much like something like the Veldt in FFVI to return in a future title. And I agree about the rewarding sidequests thing. Although to be honest a lot of the sidequests are fun just because you CAN do them, not because of what they bring you in the game.