Oh, and what about the Counsellor's dialogue?
What about it?
If you are Baldurian > you get dialogue options to recognize certain names ...
If you are not > you dont.

Rag, this is trolling-borderline-idiocy. My original thought was not about Tav's reactions - it was about Counsellor and FF's reactions to Tav being of an unsavoury race:
a good indicator of city's reaction should be how that Duke's counsellor and Flaming Fist soldiers react to Tav being a Drow during the event at Waukeen's Rest. Whatever they say and do should be pretty much in line with the rest of the city.
If their dialogue lines are the same for Drow and Human, I wouldn't expect any special reception for drows / giths in the city. Because otherwise it would be a very poor writing on Larian's part.