Since this is going off the "Elves are Chaotic", let's not forget that they are also Good. In my homebrew I have an area that is called the Elven Nation while they have no ruling body or figurehead of any sort. They live together in tree hugging harmony. I give the elves a STRONG sense of community. If there is an Orc army nearby or in the world, they don't wait for a King to declare war on the Orcs, those that can take up arms and do what is Good. The only reason I see why elves would need goverment is to interact with other races.