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As far as I know, there are four ways to go about this:

1: You do your job as assigned and kill Elan, when you go back you'll get your soldiers as promised. I don't remember the exact amount, but they're worth quite the sum of gold.

2: You leave and offer him gold as a compensation, as far as I'm aware, this does nothing but cost you gold, even if you spare 5000 gold.

3: You press him for gold, in exchange for which you leave him alone. You can drag 1000 gold out of this, which is much less than the soldiers you get for killing him expressed in gold.

4: You press him for gold, but say that he can spare 2000. He will become enraged and attack you. Refer to point 1 from here on.

There is no negative consequence for killing Elan [spoiler]unless you have a problem with allowing slavery to continue.[/spoiler]

Continuation of what I said before: When you kill D'Kah in mission 5 he still sets up a defense during the assault on Ravinale, he is even alive to battle you.

Also, I recruited Naj and La'man on my first playthrough and killed them on my second playthrough. It still shows Naj and La'man in the scene right before the assault on Ravinale on the second playthrough.

After killing General D'Kah in mission 5 Griffin's dialogue does not update when asked about D'kah.