I have. I once ran a one-off game where the player characters were Fronelan "Pure Ones" - Telmori without the curse of enforced transformation. They were trapped within a small area entirely enclosed by the Ban which they shared with an isolated human Barony and with which they had had to achieve some kind of modus vivendi. This began to break down as the Ban began to lift and other, less sympathetic humans arrived.
The scenario climaxed with the remaining Telmori forced either to give battle in the open against a superior human army or to retreat into the remaining mists of the Ban there to wander lost in eternal madness. Unless of course the PCs could retrieve the magic item that would allow them to navigate the mist realm safely. It was corny but it worked OK.
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