Could Legolas actually see that far?

The video “How Far Can Legolas See?” by MinutePhysics recently went viral. The video states that although Legolas would in principle be able to count $105$ horsemen $24\text{ km}$ away, he shouldn't have been able to tell that their leader was very tall. I understand that the main goal of MinutePhysics is mostly educational, and for that reason it assumes a simplified model for seeing. But if we consider a more detailed model for vision, it appears to me that even with human-size eyeballs and pupils $^\dagger$, one might actually be able to (in principle) distinguish smaller angles than the well known angular resolution: $$\theta \approx 1.22 \frac \lambda D$$ So here's my question—using the facts that: Elves have two eyes (which might be useful as in e.g. the Very Large Array ). Eyes can dynamically move and change the size of their pupils. And assuming that: Legolas could do intensive image processing. The density of photoreceptor cells in Legolas's retina is not a limiting factor here. Elves are pretty much limited to visible light just as humans are. They had the cleanest air possible on Earth on that day. How well could Legolas see those horsemen? $^\dagger$ I'm not sure if this is an accurate description of elves in Tolkien's fantasy