I'd say that yes, it is a blinkered wish-fulfillment. If the downtrodden are faeries, then we don't REALLY need to feel sympathy.
Then again, there are tales where characters who are kind to a person despite their appearance, are generously rewarded for "seeing past" the outward hobo appearance.
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Then again, there are tales where characters who are kind to a person despite their appearance, are generously rewarded for "seeing past" the outward hobo appearance.