The gods had really fallen from their place. To use the elves in such a horrendous way. Heimdall wouldn't have been surprised if the elves would have come in the jurisdiction of the Olympus. But the elves belonged to Asgard and for them to behave this way could mean only one thing... Odin too was seeing Arnold as a threat.
Either it was that or the fact that he could have been overthrown from the throne by someone else. However, this wasn't possible because Heimdall would know about it if something like that would have happened.
Either way, it wasn't good news for Arnold. Asgard would have never supported Olympus in any way, shape or form. It was possible that Loki and Zeus twisted the narrative in their favour and made the others do as they asked.
"May the All-father give you peace and a seat in Valhalla..." Heimdall uttered those words whenever an Elven soul was taken away by his sword.
