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It must be understood that in some cases the process by which a god or goddess degenerates into a fairy may occupy centuries, and that in the passage of generations such an alteration may be brought about in appearance and traits as to make it seem impossible that any relationship actually exists between the old form and the new. This may be accounted for by the circumstance that in gradually assuming the traits of fairyhood the god or goddess may also have taken on the characteristics of fairies which Already existed in the minds of the folk, the elves of a past age, who were already elves at a period when he or she still flourished in the full vigour of godhead. For in one sense Faerie represents a species of limbo, a great abyss of traditional material, into which every kind of ancient belief came to be cast as the acceptance of one new faith after another dictated the abandonment of forms and ideas unacceptable to its doctrines. The difference between god and fairy is indeed the difference between religion and folk-lore.
Lewis Spence British Fairy Origins
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It must be understood that in some cases the process by which a god or goddess degenerates into a fairy may occupy centuries, and that in the passage of generations such an alteration may be brought about in appearance and traits as to make it seem impossible that any relationship actually exists between the old form and the new. This may be accounted for by the circumstance that in gradually assuming the traits of fairyhood the god or goddess may also have taken on the characteristics of fairies which Already existed in the minds of the folk, the elves of a past age, who were already elves at a period when he or she still flourished in the full vigour of godhead. For in one sense Faerie represents a species of limbo, a great abyss of traditional material, into which every kind of ancient belief came to be cast as the acceptance of one new faith after another dictated the abandonment of forms and ideas unacceptable to its doctrines. The difference between god and fairy is indeed the difference between religion and folk-lore.
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Lewis Spence

British Fairy Origins

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The child's world is alert and alive, governed by rules of response and command, not by physical laws: a portentous continuum of consciousness, endowed with purpose and intent, either resistant or responsive to the child itself. This infantile notion of a world governed by moral rather than physical laws, kept under control by a superordinated parental personality instead of impersonal physical forces, and oriented to the weal and woe of man, is an illusion that dominates men's thoughts all over the world.The sense then, of this world as an undifferentiated continuum of simultaneously subjective and objective experience (Participation), which is all alive (Animism), and which was created by a superior being (Artificialism), may be said to constitute the frame of reference of all childhood experience no matter where in the world. No small wonder then, that the above Three Principles are precisely those most represented in the mythologies and religious systems of the whole world.