If we were in Sarene’s viewpoint here, we’d probably see her thinking about the time this very thing happened to her—at her wedding.
I think her speech makes some good points. However, I think the people of the city have also been through so much lately that they’re ready to accept anything. The combination of moving speech and unresponsive crowd is what let them get away with making Raoden king. Honestly, so many people have been popping in and out of Elantris lately that I suspect the people of the city are beginning to lose their edge of fear. They know that the Shaod isn’t contagious, and they now know that many Elantrians aren’t dangerous. The would see the illusion drop, and finally make the connection between Raoden and the Elantiran Spirit that helped them distribute food.
In this case, hope overcomes fear.
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