Awesome write-up, Ed! Let the interrogation begin!
Q: Given their fey roots and small size, do Brownies consider them (either rightly or wrongly) to be "distant cousins" and do Brownies have common myths about them? What about other fey like dryads and pixies?
Brownies don't consider them distant cousins, neither do other fey. There would be legends about t'oleflor and them being almost "nature incarnate".
Q: Any plans to include the crystal armor mentioned in the MMORPG for druids and Berylites?
No plans as of yet, as we're focusing on the "regular" races first.
Q: I believe I heard that the T'olelflor were esponsible for much of the "seeding" of life prior to the Dragons' arrival to the world. If this is so, do the dragons and T'olelflor hold any animosity between eachother?
There's a story to be told here, but I won't raise that curtain now
Was there ever some conflict between the two in the distant past that would be legend today?
Not raising this curtain now either!
Q: Under diplomacy I noticed they have disdain for the heavily crafting Dwarfs and Gnomes. Could there be an exception for Forrest Gnomes in this regard?
Well, forest gnomes are still very much interested in gemcrafting so would still be frowned upon. Of course not as much as a full-fledged cleric of Goran who works at the Academy of Innovation, but still.
Q: If they see the use of leather as barbaric, does that mean they're effectively vegetarian/vegan?
Vegetarian, yes.
Q: Does the race of T'olelflor predate the arrival of the gods to Layonara and if so, is that a large reason why they don't follow them?
See the last sentence here:
LORE: T'oleflor: Relations, Environment, Society, ReligionThrough the ages? So the t'oleflor are no longer somewhere else beyond a magic door but considered to have actually been spread here and there through the forests of Layonara forever?
The ones encountered so far in NWN Layonara were living in a Pit in the Pits of Endless Strife or made a temporary visit to Layonara proper from there.
The conflicts referred to are conflicts in the Pits, as they haven't been living on Layonara for a long long time.