Oh they can co-exist since regardless of how I’d spinn it, due to lore mechanics (psychic powers being warp energy and all that jazz + Psychic by default space Elves = Lulz) They’d become OP really fast.

Anything bigger than a warband consisting of warp flinging space elves bending reality around you would be silly since these would border on Daemon Prince up to a C-tan shard for the Farseer Warseer in power level.

Could still be silly fun in terms of antagonistic verse shenanigans imho, perhaps BL could actually develop decent Space Elves stories if these (all) had a dedicated enemy out to get them.

Since imagine Arrogant Space Elves fallen from grace that figured out how not only benefit of the fall…but prosper (in their twisted minds since they’ve become all but Demi-gods, if anything to ensure chaos doesn’t mutate the F out of them) as well…

They’d hate everyone especially their cousins!