So there's two universes that immediately sprang to mind:
Dune and Warhammer 40K
Both have Ranged combat, both however have a significant focus on Melee:
In the case of Dune, it's because of (according to Lore) the interaction between a Laser weapon and a personal shield creates an explosion that can vary from individual scale all the way up to the size of Atomic Weapons. Since everyone uses personal shields, no one uses Lasers in combat as it could trigger total annihilation.
Depending on what the Fae have, a similar limitation might be applicable (Magical sheilds that reflect/deflect the energy of a ranged weapon which could cause collateral damage)
40K has several reasons for Melee combat:
1: To please the Gods of Chaos (Blood for the Blood God! Skulls for the Skull throne!) - The chaos god of Khorne (think the manifestation of Humanities innate desire to kill each other) strongly favors Melee combat, believing it to be more skill based and thus 'honorable' (despite being a Chaos God, Khorne is strongly aligned with Honor, so things like 1v1 duels earn his favor). Linking back to your world, the Fae may likewise have a similar honor system - such as it being bad to kill an enemy without being able to look them in the eye or that to kill someone leaving them alone to take their last breath is seen as cruel/evil or that to kill someone without giving them a fair chance to escape or retaliate is shameful. Depending on your real world inspirations - some of the Native American honor code(s) around combat may be applicable.
2: Ranged weapons need Ammunition, A Sword never needs to be reloaded. In 40K this is often justified by a few genetically enhanced super-soldiers (The Space Marines!) facing down against hordes of enemies (Filthy Xenos!) and so a ranged weapon would so quickly run out of ammunition making it pointless. In your story, it's the few against the Many - so it's possibly they might opt for a Melee focus since they couldn't possibly carry enough Ammunition.
3: Different worlds have different Tech levels - in 40K some worlds are at a feudal level, others are hyper advanced. In the real world - we have the Amish and the Luddites - those who actively reject technology due to a particular belief - it's entirely possible your Fae feel the same way.
4: Melee doesn't have to be weaker than Ranged. 40K is infamous for it's ludicrously overpowered weaponary, such as the Chainsword, Lightning Claws, Thunder Hammers Monomolecular blades etc. There is no reason why you cannot make your Melee weapons imbued with some reason why they are intrinsically better - a Sword might be able to be enchanted or otherwise enhanced by a physical connection with the being that wields it, something that a Projectile cannot maintain once it leaves the barrel - thus making a flaming sword bolstered by the Users otherworldly skills that requires it to be held in order to work is plausible.
Putting aside some of my favourite universes:
There's no reason why a planet that supports the Internet and TV would have to have the natural minerals to make gunpowder.
It could be that atmospheric conditions (too much oxygen, not enough oxygen, significantly higher atmospheric pressure) provide a limitation that makes Firearms impractical.
It could be that the report of a Firearm being discharged draws some dangerous predator to the location making use of Firearms extremely hazardous and only a last-resort option.