1. Definitely elves, I think. The point is that Ariel isn't mortal, and so can't feel things in the mattering sort of way that humans do (see also the gods of the Iliad). Tolkien's elves aren't just ethereal, graceful, lovely, etc. -- they're also rather inhuman, because when push comes to shove, they know (except for Arwen) that they're taking ship for the Western Lands, and none of the things that matter so desperately to the mortal creatures of MiddleEarth ultimately affect them.

2. Yeah, "the old man" can be a synonym for "husband" as well as "father" - sort of male equivalent of "the missus." In fact, I'd say I've seen it more in that usage than the other ("father"), in British contexts.