I don't want to argue this too strongly, since I want for The Gates of Firestorm Peak and its associated mythos to be Greyhawk canon, and there is actually an argument for it. But Oerth wasn't considered to be the "default setting" for the AD&D game back in 1996, when that module was published. That wouldn't happen until after Wizards of the Coast bought out the company and pro-Greyhawk voices (in particular, Lisa Stevens [who now owns Paizo], Roger E. Moore, and Harold Johnson) got a louder voice. It really stopped being the default setting in 1985, when Gary Gygax left TSR, was officially changed to the Forgotten Realms in 1987, and wasn't anything by the mid-nineties. After WotC bought the company, you start seeing things like Greyhawk gods and races being mentioned in otherwise core adventures and supplements. The Shattered Circle mentions the Suloise, and Bastion of Faith is about Heironeous.
The difference in these two eras is pretty striking, actually. Bruce Cordell's College of Magic was published in 1997, after the buy-out but they were still publishing stuff written at TSR. In that book, the primary god of good is Immotion, goddess of magic and purity, and the main god of evil is Dargeshaad. Neither of them are Greyhawk deities. Bastion of Faith was published in 1999, and though this was supposed to be in the same continuity/series/city as College of Magic and both were written by Bruce Cordell, suddenly it's Greyhawk-specific, with generic Immotion replaced with Heironeous and generic Dargeshaad replaced with Hextor. We know that Hextor was originally intended to be Dargeshaad because in Reverse Dungeon (2000), co-written by Bruce Cordell, the villain Kahabros, who was a servant of Hextor in Bastion of Faith, is said to be a servant of Dargeshaad in Reverse Dungeon.
The setting for The Gates of Firestorm Peak is given in the module as "the Shirelands, at the southern foothills of the Mountains of Frost," which isn't known to be part of Oerth's geography (there's a Land of the Frost Barbarians on Oerth, so you could speculate that the Mountains of Frost are actually the Griff Mountains that run through that land, and the Shirelands would therefore be the Duchy of Tenh, but it'd only be speculation). The Gates of Firestorm Peak actually takes place in the "Cordelloverse," an implied setting that unifies everything Bruce Cordell wrote for second edition (and, to a lesser extent, third and fourth edition). Some of what Cordell wrote is Greyhawk-specific: Return to White Plume Mountain, Return to the Tomb of Horrors, Bastion of Faith, The Shattered Circle. Much of it isn't, and uses non-Greyhawk deities and place names: A Guide to the Ethereal Plane, The Illithiad, The Gates of Firestorm Peak, College of Wizardry, Night of the Shark.
Now, as I said, there are plenty of shared names and crossovers between all these things. The Lost Realm of Olefin is mentioned as the site of the largest city in the Elder Elf empire in The Gates of Firestorm Peak. The now-sunken island chain of Olefin is on the map in Night of the Shark (which doesn't obviously match up with any Greyhawk map). The Illithiad features a presentation from the Olefin Temporal Society, in which a chronomancer accidentally travels to the Far Realm and back. This thread on Canonfire discusses Gates of Firestorm Peak, the Realm of Olefin, and the problems and benefits of setting both in Greyhawk (I post as "rasgon" there).
As I said, there's an argument for linking all of Bruce Cordell's 2e works for Greyhawk, because some of it is obviously Greyhawk and all of it is interconnected. Dargeshaad gets a brief mention in Return to the Tomb of Horrors, the Far Realm is mentioned in The Illithiad and A Guide to the Ethereal Plane, and the Elder Elves are mentioned in Night of the Shark and Sea of Blood. But it involves ignoring the fact that many of these works are plainly not set in Greyhawk, using names of generic gods and places that aren't part of that campaign.
That's true with third edition things too, incidentally. Like, Complete Arcane and Complete Divine both make heavy use of Greyhawk as the default setting with things like Greyhawk gods in Complete Divine and the Suel arcanomach and Duchy of Urnst in Complete Arcane. But Complete Adventurer doesn't use Greyhawk at all, and Races of Destiny invents a few new human gods that don't fit easily with Greyhawk's pantheons. So "default setting" can be hit or miss in both 2nd and 3rd edition.
That said, I think the Elder Elves are ultimately a good addition to the Greyhawk campaign. I'd place them in what is now known as the Sinking Isle and on the mainland, and probably put Firestorm Peak in the Duchy of Tenh (though it could be anywhere, and might make more sense closer to the coast). They definitely precede the war between dark elves and light. We know Kiaransalee was a mortal elf before the fall of Lolth in -30,000 DR, the queen of an entire world, so there must have been a fairly advanced elven civilization during that era. Perhaps the Elder Elves lived some time between then and -18,000 DR. Your theory that the corruption of the Vast Gate led to their worship of the Elder Elemental Eye might have merit, if you assume that elven history on Oerth parallels elven history on Toril that precisely.
The Great Embarkation by Erik Mona is generally considered to be quasi-canon because it was written for the Living Greyhawk Gazetteer but cut before publication. Regardless, it's a fairly interesting story of a war between the elves soon after their arrival on Oerth and the older, reptilian and bestial races that preceded them as masters of the continent. This would have been during the time of the Elder Elves, because Sea of Blood credits the Elder Elves with creation of the sea elves, which is also what "The Great Embarkation" discusses. If this happened during an ice age, it might help explain why the amphibious and reptilian races lost, and would allow us to make the ice age be the time when the reptilian and amphibian domination of the continent ended and the rule of mammals began. After cleansing the Flanaess of the bestial races, the Elder Elves might have turned inward to more esoteric magical exploration, dabbling in chronomancy and planar travel before destroying their civilization with the Vast Gate.
If Father Llymic caused the ice age, however, then perhaps there were two ice ages (the first caused by the Battle of Pesh and the second caused by Father Llymic at the end of the Elder Elf era). That's an interesting possibility I hadn't considered before. The elven wrecking of kuo-toa and quaggoth civilization might have been at some point between those two eras, during a temporary warm spell.
The Elder Elves were the ancestors of the "nomadic high elves" who spread the elven race throughout the worlds, so they must have died out prior to -24,500 DR, when elves first arrived on Toril from the plane of Faerie. The Complete Book of Elves said that the nomadic high elves migrated after the Elfwar between light and dark elves, but this doesn't work with the Forgotten Realms timeline; instead, I might argue that the Elfwar in question was actually the war against the squamous races before the height of the Elder Elf civilization. The gates created by the Elder Elves might have actually been the method through which the "nomadic high elves" spread to Toril and elsewhere; if so, then -24,500 DR (that's -25,870 Lady's Edict, or -23,720 CY in Oerth's common calendar) might be very close to the date of the Vast Gate disaster.
If the Vast Gate cataclysm destroyed several Elder Elf colonies simultaneously, or if it happened in the Feywild rather than on Oerth, it could be blamed for the destruction of Tintageer around -24,500 DR which for all I know fits very well with the Firestorm Peak backstory. Perhaps the Elder Elves created gates leading from Tintageer to Oerth, or vice versa, among many other destinations, and a few centuries later a secret sect in the Mountains of Frost created the Vast Gate that destroyed their entire civilization, forcing refugees to flee to Toril.
There was a very comprehensive one on the Wizards of the Coast message boards a while back. I think it's gone, now, but I have it saved. I could post from it here to get the thread started.
I really like the idea of a good-aligned Far Realm race, actually. The plane is supposed to be beyond alignment, but effectively most of the creatures from it end up as some flavor of evil. The idea of a truly alien form of good that has nothing to do with the upper planes is refreshing.
but Gates of Firestorm Peak wasn't a Greyhawk adventure
Actually, it was quasi-Greyhawk, much like a lot of 3x stuff (such as Return to the Temple of Elemental Evil)
It was "default setting" which is assumed to be Oerth, but minus the politics and provincial/kingdom geography, essentially.
I wouldn't necessarily assume everything in Elder Evils has a place on Oerth, either.
I don't. However, the section on the history of Father Lymic specifically states that he came through the Vast Gate on Firestorm Peak and was sealed inside a nearby mountain by the Elder Elves. This places it on the same prime world as Firestorm Peak, which is presumed to be Oerth.
On a similar subject, I plan to make a Far-Realm reference index sooner or later, which will include a post that encorporates some of the stuff from Violet Dawn (Dark-Sun-like setting from Inner Circle, but more Cthulhulicious.)
I still haven't finished reading everything on it. Mentioning fluff and the like on Planewalker won't be a problem because (though they haven't released it all yet-- sadly Inner Circle seems to have possibly gone silent for about a year, now) on their site they've stated that the non-mechanics/edition materials from their books has been designated OGL.
Of particular interest to me is the Luminary race, and the books all but flat out state that they're from the Far-Realm (stating that "they have more in common with pseudonaturals and neh-thalggu"), only problem is they have too much of a good theme going (even have a bunch of holy attacks). Still, I like the theme of inimical, alien angel/celestial-like beings. From their description, it appears as though they are beings of antimatter (with the reaction being on a much more player-friendly scale rather than blowing up an entire planet if they bump into someone)