Quick sidebar: where are sun elves, specifically, classified as being good-aligned? I flipped their through entry in the FR 3E Campaign Setting, and didn't notice anything about alignment there. The 3E portion of their
wiki entry (on the sidebar) said that they're LG, NG, CG, and N, but referred back to the FR3ECS and the 3.5 PHB.
(I'm not sure I saw where it described them as being "racist" either, now that I think about it.)
The "racist" part is the sentence quoted earlier from the 3e FR Campaign Setting:
"Sun Elves ... are seen as the most civilized and
haughty elves, preferring to remain
separate from humankind and other
nonelven races."
The Sun Elves are literally racist separatists, and racist supremacists, elevating the "Elf race" and being "haughty" against every other race.
The being "Good" is a fair question. Generally, according to the 3e Players Handbook, all Elves are Chaotic Good, except for Drow who are Chaotic Evil.
3e PH: "Elves. Alignment. ... Elves love freedom, ... and are more often Good than not."
In FR too, "Sun Elves have all the elven racial traits listed on page 16 of the Players Handbook, except as follows. +2 Intelligence," etcetera.
Thus Sun Elves associate with the same Elf that loves freedom and is assumed to be Good.
Wow! Even the 3e Players Handbook says all Elves are "haughty". "Elves. Relations. Elves ... look on Half-Elves with some degree of pity. ... While haughty, ... they are generally pleasant."
So, according to 3e Greyhawk core and 3e Forgotten Realms, the Elf is officially a polite racist supremacist ... and is Good.
Unbelievable!
No wonder the Elf got so messed up.