I was there as the Marshal 1 year ago exactly and got bored and left. The player base at that point of time consisted more of Azdrazi than actual High Elves. Obviously, things might have changed, but when we went there recently, they were still up to the same shenanigans. Trying to kill a Caurost Ilumrin persona for being an impure High Elf, leaving signs in the city saying "Wash yourself after entering the Dark Elf district", things of that nature. It was more or less a High Elven ethnostate where other Elves were second class citizens. From the perspective of world building, that is fine, it is not unethical to play a character who aligns with these negative values.
Also, something being legal does not make it explicitly culturally okay, I don't even care really that the group has role-played these things (racism, persecution, etc). I just think the claim of genocide is preposterous. It's very clearly outlined in my other posts if you're curious. Cool, you guys legalized homosexuality around the same time server rules were changed to mandate it could not be persecuted, or slightly before then. That's fine, it still doesn't explain harboring a satanic organization that traffics people's souls, kills people, and traps them in shards of prismarine for shits and giggles.
The intent of these things being said wasn't to disparage Haelun'or out-of-characterly, but more so to explain the complexity involving why Haelun'or had very poor relationships with other countries, and other groups in the elven diaspora at the time. You're right it's High Elven supremacy, but it's such a small nitpick that it doesn't really matter. "Nowhere near as segregated or bigoted" simply serves to minimize that the state itself was both segregated and bigoted to some extent still. Which is fine, that's role-play, I don't really care. But it doesn't exonerate them of the multitude of crimes which resulted in the persecution of the High Elves in the first place.
Historically, the High Elves have been malicious to other Elves, and at points also malicious to Humanity, who at one point were among their closest allies until they slaughtered Andrik Vydra. In the modern day, they replaced harboring Shades with harboring Mystics, and it resulted more or less in the disintegration of their polity altogether.