Dark elves:
Hate them, kill on sight ask questions later, they're evil, bad, don't trust them, "they killed my family in Hlint/Port Hempstead/Spellgard with their raid", evil incarnate, steal your children, burn your crops, rape your wives, kill your husbands, use your children in dark rituals, poison you, backstab you, hate you, and so on.
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where do giants, trolls, orcs, and other humanoid races stand with the common people? What about kobolds and goblins?
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These all scare the hell out of them.
Oh, and "Surely there's lots of good dark elves" is not true. There are MILLIONS of evil dark elves and people know it. They've conducted tons of raids and sieges over the centuries, their religion tells them to rule over all, so a handfull of Az'attans and some adventurers are not going to change the general populace's opinion.