They do, again, do you know the lore? You've played the games right? And what does their core design have to do with Tolkien Elves? Tolkien Elves weren't pompous asses. All of the elves are described as being so in sync with their world that they are naturally superior. Elves are more than just a race in LOTR, they are immortal. Any misconstrued arrogance is because of the fact they cant naturally die. While the Altmer have a superiority complex by choice and culture.
The elves in Tolkien lore are DEFINITELY pompus asses
They're selfish, self-righteous, racist, and when Middle-Earth was in real peril, they all decided it was time to ship off back to the West, where they'd better beg the Valar for their wretched lives after they blew them off in pre-history, killed a significant amount of their loyal followers, and then refused to defend Middle-Earth because they've "endured too much sorrow". Granted, there are good elves, and the elves were naturally stronger, wiser, and more powerful than Men, but they sure weren't afraid of parading it around like a jealous older sibling. Being immortal isn't an excuse for being rude and condescending.
That's not to say that the Altmer should be anything like Tolkein's elves. But the elves in Oblivion were dorky, and not in a lore-designed way. Just because the Altmer have a false sense of superiority doesn't mean they should all act like tea-drinking grandparents, there are better ways to carry the "I'm too good for you" message across. And Bosmer can definitely be portrayed as half-insane with claustrophobia without being the joke race. The various cultures of the elves should be better presented in-game, so that their weird behaviour is meaningful to the player instead of seeming badly-designed.