Creativity is much more than the derivative production of artifacts. What the OP is driving at is that creativity is a process of human connection and communication—you can see this most clearly in the art of interpretation. A single literary work has an almost uncountable number of possible interpretations, and a huge element of its existence in the world as a price of art are the discussions and debates that emerge over those interpretations, and how they shape us as individuals, instill morals, etc etc. Quite a lot more than "making elves by adding pointy ears to humans".
Your post stinks of the very gross consumerist mindset the OP called out. The creation and preservation of meaning is about way more than the production of fungible decontextualized objects--it's all about the mediation and maintenance of human relationships through artifacts. The fact that the elves have pointy ears doesn't even begin to scratch at their actual meaning (e.g. they exist in a world with very big real problems that effect you and me too, e.g. race relations, and exaggerated features estrange these relations so as to make them more discernible to us and allow us to finally see the water we swim in).
If humans stop engaging with these processes, it's reasonable to believe that a lot of that semiotic richness, which is much of what, in my opinion, makes us human and not just super smart animals in the first place, will be lost.