Hey there. The dildo crossbow isn't an elf, but elves are a planned enemy in the future!
I also really like your idea. I know Treasure Tech has a similar mechanic where you can daze enemies by punching them, then pick them up and throw them as projectiles. I might do a little experimenting. Given the sheer quantity of goblins present in the game, however, it might not be the best idea to make them medkits, especially since you'd feel obligated to grab every goblin for health.
Hope you enjoy the demo!