elitism is pretty much the opposite of egalitarianism and is not always bad (and not always good). Wikipedia is a reference that is developed in an egalitarian manner. at least here in the U.S. (and nearly any other developed country), medicine is practiced in a highly elitist manner. if you're going into the operating room, who do you want cutting into you? someone who says or thinks he/she knows what he/she is doing? or someone who has demonstrated (to the existing medical establishment) that he/she knows what he/she is doing?
now sometimes elitism excludes the wisdom offered by someone on the outside of the established professional community. that can be bad. sometimes elistists rest on their laurels, the credentials they, themselves, create and bestow/distribute that indicate, in their own judgement, who is competent (and, conversely, who is not). this might be the problem in scholarship. for an example in physics, check out the Wikipedia article on Freeman Dyson or even Albert Einstein (although, i think that Einstein got a PhD from somewhere, at least an honorary PhD, didn't he?). so ask yourself, should the scholarly physics community have included or excluded these persons from their circle? how, in a systemic manner, should the community of scholars include people in their circle? how about other similar professions such as medicine?
this is not easy, and i am no disinterested observer. i have, at one time, been included in this community of scholars and have since been excluded simply because i lacked the "union card" that now even non-prestigious schools consider minimal (this was not always the case in some programs with extremely low supply/demand ratio, such as nursing or engineering). but, i have to admit, i would have trouble signing on the dotted line for surgery if the surgeon was not fully certified and credentialed. (but i think it's different for teaching in a post-high-school institution.)
in politics, elitism is another issue. should the President of the United States be a person with a clear record of accomplishment (Bill Clinton was a Rhodes scholar) or are we better served by someone who is no more talented than the average Joe (the present Abomination in the White House)? even though it is not applicable, in my opinion, Barack Obama is now being attacked (hypocritically) by detractors saying that he has "no experience".
maybe i did too much work for you. but this lays out what the issues regarding the virtue of elitism may be.