Warband 1:
Legolas:Armour+Elven cloak
3 Galadhrim Knights:Elven blade+shield
Total:165

Warband 2:
Balin: Durin's Axe
6 Khazad Guard
Total:151

Warband 3:
High elf captain: shield
4 high elves: Spear+shield
2 high elves: Spear+shield+Elf bow
1 high elf: Banner
Total:184

Total Points:500
Models:19
Bows:2+Legolas
Might:8

(I have been advised not to bring many bows as I am against harad&Umbar.)

I'd say that you have way too few models without any massive heroes to make up for this.
If you want to keep 3 warbands still, drop the banner, max out your bows for the elves, drop the knights for some Galadhrim warriors and drop all/most of the equipment on your high elves but, but still max out your bows. Then take Erestor instead of your High Elf Captain.

If you don't mind having 2 warbands but still want elves and dwarves, I'd take Galadriel and Balin/Gimli (you decide) as your heroes for Galadriel's blinding light and other good spells too.

First off, I think the tone of what people were saying on your 'exposing the weakness of Harad thread' was that you "should not try to out shoot harad", not that you should not bring many bows. I dunno about other people but what I mean by 'not try to outshoot' was not to play the kinda game where you spend all your time camping within 24" focusing on bowfire as opposed to combat.

Elves are an army that you should almost always max out bows with, dwarves not so much, just because Harad will do more damage does not mean you should resign yourself to doing none.

Onto list criticism:
Banner is unecessary, it reduces your bodycount by 3 models - which matters
As Elrond pointed out - low bodycount with no major hero to compensate

Here is a list I just whacked up that keeps the theme but also features more numbers and a big centrepiece to keep everything 'fresh'.

Galadriel
12 wood elves with spear

Legolas
6 wood elves with bow

Balin
6 dwarves with shield

That list has magic, 8 more models than your last list, and more might. It may lack the 'punch' of cavalry but I honestly believe that more bodies and magic is a far more potent tool than 3 str 3 knights. Also, thanks to Galadriel you can cast blinding light and then comfortably shoot at the enemy with little risk of your dudes goin down (they can hide behind defence 7 dwarves just in case).

The list is by no means perfect but it is an OK example of what can be achieved if you really wanna maximise what you can cram into 500pts.

New Edited List:
Warband 1:
Legolas: Armour (No elven cloak as board has very little scenery)
6 Galadhrim warriors: Bow
1 Galadhrim warrior : Banner+bow
3 Galadhrim Knights:Elven blade+shield
Total:250

Warband 2:
Galadriel
12 Galadhrim warriors: Spear+shield
points:250

Total points:500
Models:24
Might:6
Bows:7+legolas.