And oh damn I nearly forgot -- Patricia McKillip does a fantastic retelling of Tam Lin with her Winter Rose. It's more about humanity than fairyland, but she does a bang-up job of contrasting the familiar with the alien, and showing how the latter can be both enticing and terrifying.

She has written other fairy-ish books, I believe. (One of which... I own? And have read? Must really assemble library into coherent structure...)