I didn't mind the faces, but how come every frail old man and beggar has a six pack?, Where are all the Fatties?
The problem is that past games didn't allow for different characters to have different body shapes, so no matter what people's faces and hair were like, everything below the neck would look the same, but fortunately, Skyrim should fix this.
The curse that made the dark elves was to turn them dark, not disfigure them. Normal elves wouldn't find this change in skin tone attractive more than likely as creatures of the same race are genetically inclined to find similar looking members of their race to be attractive (of course in our day and age, people have experimented enough that more and more people aren't bound by such things). As described on the UESP-
That's true, Dunmer are supposed to be dark, they have dark skin and red eyes, we're told that this is what they're cursed with. It's never mentioned that they became ugly in other areas beyond that. Besides, we already have a different race that was originally elves who became ugly due to events involving gods. You know, they're called orcs.
Same as LotR lorewise then
Similar, but not identicle, but that's beside the point, Lord of the Rings orcs, at least the design they decided to go with in the movies, are really not how I want my orcs to look, not because they're ugly, though they are, and orcs aren't supposed to be pretty, but because I'd never think they were orcs if the characters didn't call them that. Plus, they looked like some sort of hideous monster, and that's not what the Elder Scrolls orcs are supposed to be, they should be ugly, but still something one could relate to, not something you'd expect to be killing.