Instead she made it like hermoine is wrong and the elves really do love being completely subservient to another species to the point of abuse and literally having no choice but to stay unless you’re given CLOTHING. It’s the most wild fucked up obvious lowest rung of society that desperately needs advocates and just… kinda stops there. It would be one thing if they just existed and we all later were like wait rhats messed up, like with the goblins. But no she brought attention to it throughout the book made it a whole side plot and absolutely nothing was ever accomplished. I think even later books sort of call back to this in a humorous way.
But I still like to imagine my headcannon being it. It makes me laugh more than being just a plain bigot does. It’s funnier if she is writing something she thinks a moral good character would do as her self insert and just still fails so miserably.