Yes.
I have never heard of the story "The King of the Elves" and it doesn't look like the story is beyond usual Disney fare (nobody is secretly the Gnostic Demiurge, reality does not reinvent itself in the final act, and there are no drugs). But still...it is sort of a strange idea. How did that come up in conversation.
"You know the guy that wrote the book that became Bladerunner? Let's read some of his stuff and see if any of them could be a movie for little kids!