I love your AU. I have a few questions and didn't want to clutter you're inbox so I'll just ask them here.
A seelie born to the unseelie court probably wouldn't survive, but how would it work if an unseelie was born to the seelie court? Could an unseelie be raised to be a generally good or at least decent person if given good enough parents? Or even despite bad ones? In terms of civilians would an unseelie raised by a seelie be under the jurisdiction of the seelie or unseelie court?
If Virgil were fae what season would he be? (Personality wise, we know he was born in Winter)
Welp, it took me forever to be in the right headspace to answer this, but here we finally are.
Okay, so, first off you'd be surprised how many seelie survive in the unseelie court. Unseelie are more complicated than that.
All unseelie are malicious towards humans, but seelie also like to mess with humans just in a less malevolent way. Fucking with humans is a pretty universally fae thing to do.
Being malicious towards other fae (whether seelie or unseelie) and monsters? Humans, seelie, and seelie monsters think of that as an unseelie trait. That's both correct and a stereotype. It's an unseelie gentry trait.
Gentry are more violent whether they are seelie or unseelie, though unseelie gentry tend to be more vicious and are more well known for it. It's partially inherent and partially learned behavior.
Common unseelie, on the other hand, aren't much different from common seelie if you ignore their attitude towards humans. Sure, the common unseelie aren't quite as loving and kind, but at the end of the day they're just people living everyday lives.
A common unseelie family would be more likely to give their seelie child up to adoption in the seelie kingdom than a seelie family would if the roles were reversed, but it's not uncommon for them to keep the seelie child and raise them. Now, this is much less likely to happen with gentry, but still possible.
A seelie who's lived their entire life in the unseelie kingdom is primarily an unseelie citizen with automatic secondary citizenship with the seelie kingdom. If they move to the seelie kingdom then their primary and secondary citizenships get reversed. If they move back to the unseelie kingdom, frequently travel between the two without setting roots down in either, or move to Earth then things get really complicated.
It is worth noting that a seelie born of unseelie gentry can't be gentry. Regardless, that almost never happens and when it does the seelie is usually given up for adoption.
As for your second question, an unseelie is never going to be like a seelie. They will always be inherently more violent and malicious. But as stated above, a common unseelie still isn't that different from a common seelie. Are there exceptions? Yes, of course. Sometimes you will find a particularly cruel common unseelie, but as a general rule of thumb, they're about the same (minus their reactions to humans). If a common seelie raised a common unseelie they could indeed be considered a "good person" by seelie standards, for the most part.
Unseelie gentry are another story entirely. There's only so much you can do there. The learned behavior can be changed by being raised differently, but their inherent ruthlessness will always be there. They'd fit in better with the Seelie gentry they were both to than common seelie, but seelie gentry are unlikely to keep an unseelie child.
Can they be raised to be generally good or at least a decent person despite bad parents? That's a good question. Allow me to direct your attention to Grand Prince Valliance of the Unseelie. As far as royal fae go, Valliance is actually a decent person. You can find more about him under the #unseelie tag.
If Virgil were fae he'd be a spring. He stuck with his family for so long partly out of loyalty towards his family. He survived with them so long because of hope. When he met Janus's family he immediately became attached to them. He can be very playful when he's in the mood. His story is centered around his new life and new beginning. Right now growth is kind of his thing.