Glad you found some use out of my suggestions Steel General. There were 3 or 4 of your points I did have further thoughts on.

2. I can see where you are coming from, but depending upon whether or not there were city walls and #4 below, the steep hillsides would have been eventually terraced and built upon. One thing that the map does not adequately convey (and I'm not sure if you need to) is elevation. Its obvious that Fortress Eroth is higher than everything else, but I have no idea how "uneven" the rest of the area is--are we talking something like San Francisco or old Seattle here?

4. I have some problem with the area to the west of the fortress being kept clear. Elves (and dm creations) can do what they want, but given how interior in the city the fortress now is, why would they bother?

The threat to the fortress seems to be from the sea, not land. So it would be seaward defenses that a commander might be more concerned about.

This ties into a second issue. Where is the wall or the remains of one? If the land is so unsettled that the elves would want to keep the ground west of the fortress clear, then there should be a large wall enclosing most of the built up area (relatively easy to do since there's water on three sides of Raedis). If there is a wall, then keeping a killzone near the fortress is no longer necessary. A wall is also going to cause the buidling density inside the protected area of the walls to be much greater than what's outside. If there's not a wall, do you mean to say the elves would let some invader overrun their city all the way to the fortress--phew, tough elves.

5. The term ghetto for me is not necessarily a synonym for "slum". Yes, its an older area, but not necessarily run down. Think the Latin Quarter in Paris, the French Quarter in New Orleans, or the Casbah in Cairo. Ghettos to me are vibrant, tightly packed areas that sport a whole cross section of their cities citizenry. Regardless, while your elves would not permit areas to get run down, I still suspect that there are going to be quite a few densely built up areas in Raedis, especially if its been settled for millenia.

6. I can understand beings in tune with nature desiring to keep roads to a minimum, but for a city as old as Raedis seems to be, there's going to be a grid. Here's a thought, make the grid crazy quilt, curvy, with plenty of dead ends and cul-de-sacs, like the old European citys were, with roads following what were old trails, streams, and ridgelines. Not only does that look more "natural", but it can be turned into a nasty giant battle maze for any foe foolish enough to breach the walls--the defenders know how the city is laid out, but not necessarily the attackers.

One source to look at for inspiration for your elvish city if you can find it is MERP's Lorien and the Halls of the Elven Smiths. Although Amthor and Fenlon laid their elf city out on a rigid, geometric grid pattern, I thought that basing much of the "Elvish" housing and building design on Frank Lloyd Wright's aesthetic and design was an absolute hoot.