It's like a treeman. I guessed that the big guy was going to be either a treeman or a deer like the forest god in Mononoke hime. My guess the lore will say something like the Sprigs, only in this case the elf was almost dead (make it a basket case if you know the figure origin, watch "Johnny got his gun") Looking at the card it's pretty brutal piece with some interesting shenanigans even when it's demoralised (turns into terrain, block LoS and I think the enemy cannot even attack it [must consider you a terrain piece] so my guess is that it can help with some skills like Camouflage and some other skill "within N strides of a forest")
Moss Hermits are ancient warriors who walked away from Sÿennan society to mediate and contemplate the fall of their civilization. Over time, they literally became ‘one’ with the forest, and now only awaken in times of great need. So, a bit like 40K Deeadnaughts, but by choice and contemplation, rather than grievous wounds.