In some ways, Kiu Fung was the only hero that was "custom-made" by wulin. The Shaolin Temple and the Beggar's Union had invested a great deal of time and energy over the years to maximize the talents of Kiu Fung and make him the great hero we saw when he first appeared in DGSD.
But what was the point of Shaolin and the Beggar's Union building Kiu Fung up like that if they were just going to tear him down anyway? It's not as if the senior Shaolin and Beggar's Union leaders didn't know the truth about Kiu Fung's Khitan origins from the very beginning. It was Shaolin and the Beggar's Union who were instrumental to Kiu Fung's rise to prominence in wulin, and it was also members of Shaolin and the Beggar's Union that orchestrated his downfall.