Help with a Fantasy Story, If You Kindly

Hey, y’all. I know it’s been a while since I posted a significant journal entry, so I figured I’d start things off with another concept I’m currently working on, this time for a fantasy story (working title Psalm of Pendansia). While I have a very strong idea on where I want to take the narrative, lately I have been questioning the era in which I want to set the story. Currently, I’m tied between two options, and I’d really appreciate any input you guys have to give me.

Here’s a few facts on the story to help with my decision:

This is a story that’s going to heavily involve humans being rallied into seeing elvenkind as a blight upon the world, as well as many other races in the world. They are organized into demolishing the great elven kingdoms and all other races are free to either join them or be taken down with the elves.

The major powers within this fantasy story are the humans and the elves, with dwarves playing the part of a more subservient race after nearly being wiped out in the Great Inner War that brought centuries of peace between the races. Orcs are a very simple-living, burly race but not evil in the least for this story, while goblins are a more crafty race who work primarily in harnessing mana as a renewable energy source or being commissioned for designing mechanics for the kingdoms.

With a these themes in mind, I’m left to question exactly how I want to set the story:

1. Either have it set during the common trope of the Middle ages, with each of the major races of the world having a vast series of kingdoms, while other races are pretty much subgroups living in the outskirts in subservience or in independent territories. Obviously, themes such as hierarchy and honor will be prevalent, but there’s no prophecy or destiny for any of these characters, just a means of survival.

Or

2. Have it set during the early 20th century, with a hint of fascism on the part of the humans of the story. It’d be way too blunt if I made it shaped like Nazi Germany, so I was almost thinking of something more in the shape of America in the early 1900’s (maybe even the 20’s), when the nation was beginning to become a world power but intolerance was still heavily prevalent within and outside of society.

If you guys do have input on this, I’d greatly appreciate it. Thanks again