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I like to imagine that there's a difference between "sustainable use of a forest" and "rampant deforestation", and I feel that the Elyrion would consider the wood used as a gift from nature to aid them in protecting it.
or that they can't hunt but can fish
They're Pescatarians. :)
Would scorching the Earth to provide nutrients to new life in the form of agriculture be considered rampant deforestation?
Yes, it's why they don't do it. :)