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When the POSSIBLE danger of Thultanthar crashing became apparent (i.e. when the city started flying towards Myth Drannor, not when what El did became obvious) the Srinshee contacted all the Myth Drannan baelnorn she could and commanded them to get to the Tree of Souls and magically shield and defend it, warping the Weave to form a protective barrier around it (so when Thultanthar came crashing down, it would punch through the city like a spike, and protect the Tree). This was done, and the Tree has survived. There has been some consternation among certain readers about Myth Drannor being entirely in ruins, but not so. Like any city that been fought through, a big cleanup is in order, but Thultanthar is a pretty small city, and Myth Drannor, being one with the forest [growing trees as dwellings, trees and moss and open forest terrain everywhere, not human-habit pave over everything architecture, is a very large (in footprint) city. So a relatively small area of Myth Drannor was pancaked under the shattered remnants of Shade.

....the siege took some time to develop (mercenary armies being mustered in Sembia and then marched north), so the elves had warning, so many of their skilled artisans, pregnant shes, young children and families with young children, ailing elderly, wounded, and so on, GOT OUT (to Semberholme first and foremost, and to Evereska and elsewhere, too). Anyone who wanted to relocate rather than fight was given that option, without shame or recrimination.
In other words, the city was down to 6,400 or so determined and able defenders before the siege started, and they took heavy losses in the fighting by being worn down under the weight of sheer numbers; although they were inflicting very heavy losses on the attacking mercenaries, they were slowly beaten back - - and the very open nature of the city made it very hard to defend. The Coronal sent some vital individuals out of the fighting by making them envoys that she sent to elven communities all over the Realms to try to get volunteer reinforcements (few of which arrived on time). So in that way she saved another hundred or so.
However, the defenders died rather than surrender or flee, so the elves still in the city were reduced to around 1000 when it became apparent that the city couldn't be held, and the children, wounded, and elders still in the city were rushed out through the gates (as seen near the end of THE HERALD). The Coronal and Fflar were literally fighting back to back at the end, with a handful of defenders still standing, when Thultanthar came down - and almost all of that last handful made it out to Semberholme.
So at the end of THE HERALD, a few blocks of central Myth Drannor are rubble, under the shattered remnants of Thultanthar. Scavengers (monsters) are roaming the corpse-littered vicinity, and there's minor damage to the outlying city, which is abandoned - probably not for long. The surviving mercenaries are foraging/pillaging/behaving like brigands, and Sembia is in such disarray that there's no chance of Sembia (or for that matter, any other realm) reaching in to annex or occupy the ruins. Perhaps 5,000 elves perished defending Myth Drannor - and yes, the Tree of Souls survives.

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The last we saw of Ilsevele and Fflar, they had made it to Semberholme from the "last battle" in the heart of Myth Drannor. They ARE still leading the refugees, and are once again adopting a low-public-profile for "their" elves, in this part of the world, for the time being. In other words, NOT openly challenging humans or anyone else for territory, and devoting themselves to rebuilding families and daily jobs and prosperity, settling the elves into a stable society once more. And establishing frequent and secure routes of trade and communication between Semberholme, Tangletrees, Evereska, and other elf communities...including a "secret" small one that dwells in the heart of Myth Drannor, clustered around some of the tomb-tunnels and baelnorn. Much of the surrounding forest is still wild/ruined/monster-roamed, and the elves are leaving it that way, "roving" and patrolling rather than rebuffing intruders with set borders and a "this land is ours" mentality...because they see that as a mistake, and am embracing of human ways rather than living in more harmony with the land (i.e. the elven way). Yes, they guard the Tree of Souls as "ours" and keep anyone with fire (and all goblinkin [orcs, hobgoblins, goblins, etc.]) away from it...and yes, "slips" from the Tree have been secretly taken and replanted in Semberholme, Evereska, and Tangletrees, so the Tree can be "moved" by magical means in future, if need be.
On a daily basis, Fflar is reorganizing and training a militia and self-reliant local patrols, establishing esprit de corps and personal connections so trust will rise and lead to cooperation when NEXT the elves have to work together in battle, or fall. Ilsevele is doing the same "building relationships" work among elders and families, encouraging family ties through intermarriages between powerful families, and cooperative "projects" that get rivals and longtime opposite sides in feuds working together and deepening friendships.

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