So, you mean that the Sorceress castle from the first part represents the mages who split into Sylvan and mages in the second part, is that correct?
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Where is the evidence that he created elves?
2) He didn't create anything. He took legends and carefully extracted some creatures from them, converted them to a new idea, and gave them a new meaning. Regarding the elves, I don't remember where they came from...
Counter-question: give me an example of a Fantasy book BEFORE Tolkien?