People hate elves standing up for themselves.
I can't say I care for the alternative, though.
No they will do a lot more than hate elves, with what she is saying she will do. she will destroy the economy of every nation. a giant working class will just disappear. this will make them weak but this will also make everyone desperate. and the common people will know who to blame. the elves who left. the hatred would be at its very peak. even the dwarven kingdom would want the elves back in alienate because their own economies would hurt because the surface would ask for more money for the furs and other goods coming into the dwarven kingdoms, and less dwarven goods would be bought from surface nations because they couldn't afford it.
And who would trade with the elves or give them supplies? what could they make on the fly to start getting supplies as is.
And even if the inquisitor helps the elves. this hate would still happen. and lets say the Inquisition helps the elves. the people of the human nations would demand the inquisition help them instead, that they need the food, or supplies. and if they say no. the Inquisition will quickly lose allies. make the common person would demand it. or they will lose troops. lose more workers, more support.
Edit: this would all be after the events of the revolution.