Thematically it seems to fit - the Seelie Court contains several CG members. While the FR wiki does state that pixies (the closest to Arelith's representation of fey) are always NG, we do already allow TN fey as an alignment. And a lot of fey are played with a bit of a chaotic / whimsical streak anyway.
Edit: Additionally, Joyous Dance is a Fey craftable weapon with a Chaotic alignment restriction. It seems odd that their racially craftable weapon is not usable by them.
