I just use it as anti-Sirion propaganda. I sent a few flavor-letters in the past with fabricated stories of Sirion nobles mutilating their ears to look like elves.
I remember those! They were pretty fun.
I don't think anyone IC really believes in the elven thing, my char uses it as a soft
insult of the bastards that invade peaceful south. "Those damn elves", "their elven decadence" etc.