Hi Sara!
If you've ever watched any of the InuYasha anime, however, you will note that Kaede's speech is littered with "ye," "thy," and "thou." That, I believe, is where most of our authors pick it up. Since it is in keeping with the anime, it fits perfectly in the stories here.
Thanks so much for enlightening us as to the etymology of the word, though! I certainly had no idea that it wasn't used as a pronoun, probably like most here. In any event, we like to encourage our writers to use whatever suits them as they are the creative geniuses that provide us with so much free reading material!!
Thank you again for the information!
~~Wiccan~~