I feel that most Dwarf-Elf relations are glossed over and labelled as ‘non-existent’ or ‘dysfunctional’ when, for the most part, that was false. In many instances Dwarves and Elves were friends and wrought great jewels, weapons, and other wealth together (see Narvi and Celebrimbor). They were allies against the the powers of Melkor and Sauron until the calamities of the Second Age.
Galadriel especially embodies the love between Dwarves and Elves that began during her time in Eriador and later over the Misty Mountains. We must remember her gift to Gímli later on in the Third Age: three strands of her golden hair, which was famed amount the Vanyar. In some texts by Tolkien it is stated that Galadriel’s hair was what inspired Fëanor to make the Silmarils as a mirror of her beauty, and he asked her for a gift of her hair. Galadriel refused him a single strand and their life of unfriendliness and opposition began.
But then, thousands of years later, Galadriel gifts not one but three strands of her hair to a lone Dwarf who refused to even ask for a boon.