We got a chance to hobknob with the Elves themselves at the first ever BlizzCon, taking place in (equally sunny) Southern California. Here's what we learned about this new race after talking with the elders:

The entire race, once known as the High Elves, was nearly wiped out when their homeland was crushed by the Undead (as depicted in Warcraft III. The High Elves were dependant on the "Sunwell" for their magical energies, and after Arthas used it to resurrect the Lich Kel'Thuzad, it was consumed. What remained of the Elven population was a wreck: like junkies without a hookup, the best among them were like zombies and the worst went insane. With no magical energies to draw from, they grew desperate.