Stockholm (Salamandra) Syndrome?
I think the whole scenario was a finely crafted ruse created by the purient Order in contrast to romantic tales and prophecies of nonhumans. An ethnic cleansing justified by greed and paranoia. Alvin was an agent of this through the Grand Masters' manipulation to incriminate the nonhumans as the perpetrators of humanities devolution by using him as a conduit of his power to sow the Elven Prophecy of Ithlinne. The humans would respond to the nonhumans' stories as a threat to their future, therefor justifying the purge of all things non-order. A similar trick to that which The Reverend tried in The Outskirts to expunge non-racists and magical threats.
The amulet I think is part of the emotional manipulation the Grand Master had hoped to spell Geralt with, as Geralt becomes the hero figure to Alvin, maybe Geralt would offer piety in the Grand Masters conjecture (instead of a Silver Sword.)
A brainwashed warchild makes more sense to me than The Loopers' plot-line ^.^