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I think they have been misinformed. Irish Names by Donnchadh O Corrain & Fidelma Maguire has Eltin as a modern form of Eiltine, which is an Irish Gaelic name that meant either "a hind" or "a lively, nimble person". But the only derivation I can find for Elkin is a medieval English diminutive of Elie, Elijah, or Ellen.