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How many of you have read "Three Hearts and Three Lions" by Poul Anderson (1961)? This novel was published at the same time as Moorcock's Elric (The Dreaming City, also 1961). I think OD&D was influenced by both.
In Three Hearts and Three Lions Law is basically natural order, and, to a large extent, the progression of civilization. Crops can be planted and harvested at certain times, the local mill can grind grain, and so on. Life can proceed according to a plan. Chaos on the other hand, is whimsey, like your crop spontaneously changing from wheat into other plants. Chaos can be used, but not controlled. The fey in Anderson's book prefer chaos because, being immortal, they are bored out of their minds, and are willing to risk sudden destruction in hopes of getting some entertainment out of it.
Moorcock, argues that extremes of law and chaos are equally bad: the pointless activity of chaos matched by the rigid fossilization of law. But Moorcock takes these abstract concepts to the point where the geography, even the reality of the world, changes with them; to the point where worlds are destroyed by either. Anderson does not pursue the extremes; he deals with a more human-level story.
By the way - Three Hearts and Three Lions also gave us the paladin class, the D&D/Pathfinder Troll, and the Holy Avenger sword that dispells magic.
If you haven't read it, do yourself a favor.