I believe, strictly speaking, they are defiant entities rather like Storm Bull, effectively being both gods and great spirits at the same time. That's what they get for being so fluid :)
A more useful question perhaps, is whether the ludoch and their ilk use theist or animist magic. Chances are, like trolls, some do one and some the other. I'd guess blue elves are similar to other Aldryami, having 'Murthdrya Tradition' as their default and mostly being animists. As for the others, in the absence of definitive HQ information, I'd go back to RuneQuest and see what that said. Magasta, Triolina and Wachaza are all clearly gods back in RQ (i.e. they have no shamans in their cults). Further, ludoch are described as using divine magic, which we would now call Theist. Malasps could be either priests or shamans, and so presumably have both Theists and Animists in roughly equal numbers, just like trolls.
The truth may be more complicated, but that's where I'd start.
-- Trotsky Gamer and Skeptic ------------------------------------------------------ Trotsky's RPG website: http://www.ttrotsky.pwp.blueyonder.co.uk/
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