You had already experienced the first episode in all it's glory and yet you still watched more? That's not a good sign.
Much like a title by CLAMP, Elfin Lied is actually a subtle deconstruction of various anime tropes and character types. It takes various situations to their extremes, thereby expanding and examining the ideas present within under the guise of absurdity.
It's an interesting technique that only a few highly skilled directors would ever attempt to use, for fear of receiving an audience backlash due to the extreme (graphic) nature of the content. Yet, even though the show appears to revel in it's extreme gore and 'cute girl' façade, it's clearly an intelligent discussion about the worst facets of human nature that just happens to be presented as a blatantly ridiculous anime.
Hints at the show's true nature can be found in the Gustav Klimt inspired opening animation. When Klimt painted 'The Kiss', one of the works which is major inspiration for the opening sequence, he was living at home with his mother and two sisters, apparently the very picture of respectable man. However, he was secretly engaged in numerous sexual affairs. The idea of the 'false' out layer, or façade, can be found throughout much of the Elfin Lied story-arc, and it's certainly a key factor in the relationships between numerous characters. You should never judge a show by first impressions.