Re: Ellylon in Yrth.
I don't see a problem including Ellylon in Yrth. If you're playing 4e, the Pixie stats from DF3 would probably work a lot better, but you can drop their culture right into the setting. They're probably an import from Loren'dil. You could isolate them in some secluded corner of the world where things are weird, like the Blackwood or Billit Island, or they could be fully-integrated into society like the Goblins, with hive-like Ellylon neighborhoods full of stacked dwellings the size of filing cabinets in Megalos, legends of the Ellyl Knight who slew a dragon five centuries ago in Caithness, Ellyl priests saying very high-pitched mass, etc.
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