I think its has to do with Zevlor. My main is Half-Drow. As soon as you properly meet Zevlor he says something about being bold to walk around without masking my heritage. Then he says not to worry. He'll make sure everyone is aware that you helped at the gate and are friendly.
Then Kahga allows you into the grove to be used as a pawn, so that's why the Druids are okay with it.
So I think that is supposed to explain why people don't treat you with fear. Not sure I totally agree, but I think that's what they're going for.
Would make sense and would provide good excuse for these batches of NPCs to not be afraid of Monstrous/"Evil" races.
