It is very cheesy. The rest of the article answers some of your questions - the daemonfey are ostracized and eventually imprisoned, yet somehow descendants of the daemonfey look like sun elves and are accepted in their ranks.
Then it started in about hte loregems, or should I say, jedi holocrons.
This is the problem of letting authors write books in a setting and then accepting whatever they write as part of the canon. (Maybe there was an accessory first, but I think it came second.)