Yes.
Well, more like their capital city.
It was a home, for some Elves that lived there.
Yes. For those Elves that lived there, yes.
Yes.
Yes.
The ones that lived in Teldrassil don’t. Yes.
Yup. Those Elves that lived in Teldrassil now have a new capital city to live in.
Some Elves that didn’t live in Teldrassil also want to live there too, to help support the new capital.
What’s so confusing about this to you?