It all depends on the story. Yay if it's a good story, nay otherwise.
If you have a good story that involves and elf queen with peculiar interest in dragons and the resulting dragonelves then, sure, why not - as long as it's a good story.
If you have a lousy story and throw in elves and dragons for good measure but without giving them a real purpose, or if you aren't able to make them convincing and non-boring, then nay.
As for cliche, what isn't? Genre is just another word for cliche, really. Fantasy stories give you knights, magic swords, princesses, kings, wizards, blacksmith apprentices, none of which are any less cliche than dragons, elves or dwarfes. At least you have so many types to choose from that there's bound to be some variety in it. Consider detective stories... it's always the same. Victim, murderer, bystanders, police, detective, assistant, that's pretty much it. Whether it's yay or nay depends on the story entirely...
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