D&D gnomes are a bit on the large side. Maybe gnomes as pixies without wings, might tap into the folklore image of gnomes better.
Terry Pratchett did this a couple of times, with "nomes" in the Bromeliad trilogy, and the "pictsies" AKA Nac Mac Feegle, in Discworld.
In Faerun, the fall of the drow is not tied to the fall of Lolth- but took place long after.
And the Crown Wars (which had the banishment of the drow part-way through) involved appalling behaviour by both the drow and the sun elves- but it's the dark elves that end up banished, even though it wasn't them who began the war. Even perfectly innocent dark elves were transformed. The sun elves do get some comeuppance, but not nearly as much.