The Church of Humanity's stance is little known (still writing our creation of the world story). However, it essentially goes that after the Divine gave life to humanity, the beings who would eventually become daimons attempted to do the same, resulting in monsters, then the elves. Because they weren't created by the Divine, they had no spark of the Light inside them. No soul.
Therefore they are soulless daimon-spawn. Not all have been historically evil, but they are tainted by their own ego and history.
As they are not Divine-created, they have no inherent right to rule, but that doesn't necessarially disqualify them from being fair and just rulers.