I'm also a month-old newbie, but I have a rough idea from brushing up on the topic. Fae first extended a helping hand to humans in letting them settle in Avalon a long time ago, where they could escape persecution and practice magic freely. There have been a couple of wars in the time since then, alongside smaller conflicts and disputes, and eventually Celliwig withdrew from human interaction, effectively cutting off access to Elphame from Camelot.

People like Merlin have been striving to foster better relations between humans and fae since then, however, through things like education on magic and culture. And Elphame sends traders to Camelot each month to ply their wares. There's definitely still good will on both sides, of that much I'm certain.

If I had to speculate on what's still getting in the way of it... I suppose it could be boiled down to simple cultural differences.