I took it as a biography of Elanor, the most likely of the family to be able to see Elves -- first as a crawling baby, then as a growing child, finally as a near-adult who had learned to understand sundered longings.

I took the youth with ancient eyes to be a Sindar, one of the Elves easily enchanted with the life of Middle-earth, which explains why those who sailed west at all did so much later than the Noldor did. I'm not sure that I believe in Elves' staying to investigate hobbits, but I like the idea that some would, maybe having heard of the the great part they played in the ending of the Third Age.