I belive they will release the elfs. GW is leaving and FFG will lose a lot of titles and offers from its repertoire. They must make new titles and make more pupular the running titles and universes. Runebould a nice univers. I think the Runewars will have a 2nd Edition too.
I've heard this kind of statements before and fairly often actually, but I've always wondered on what data they are based.
I can see however how, if it's true that this game didn't sell enough, all we would be left with on the expansions front would be some wishful thinking. My personal one is that FFG would try to shake things up for this game by releasing a big box stand-alone expansion (something like the base game, but with Elves vs Orcs) that could both serve as an entry point for new players and as an expansion for the old fans. I wish so much this could happen!