Well, one of us used to give out cool widgets instead of bonuses, as a way saving some money, because a bonus is never enough... but, say, an ipod, is... well, cool.... a nice gift, if you get me. And nice and thoughtful gifts are always in good taste... and if that is the standard, well, then, that is the standard. Many places give out a turkey, etc. but I do think employers should show some sort of appreciation. I think it is warranted.
But asking for a present is not in good taste.
Although you may want to ask yourself, had you already purchased said elf a present, would you still have wondered where yours was? Or would you have come up with a slightly different reply? The kneejerk reaction sometimes sheds a little light into darker corners of motivations... not saying anyone's were wrong, just saying, a little hypersensitivity can sometimes cloud the issue.
Are you looking for me to tell you the person was rude, in multiple cultures? If so, then, yes. But that shouldn't make you happy enough not to give them anything. In fact, I would go so far as to guess that remark was intended to p##s you off, by someone that is slightly passive aggressive but not really brilliant... because it did lead you to the 'right question'.... eventually. But they didn't exactly drop you off there feeling that generous. If they were brighter, they might be better at manipulating you not only to the right conclusion, but so that you ended up happy you reached it once you arrived at it... and if they were really good, they would have planted the seed it was your idea all along... which would set them up for the best possible outcome.
But apparently the elf isn't all that bright... so f### him, and give him a $20 gift card to Applebees:)