The Missing Elder

On my first playthrough, I came across an Elder who gave me the option of saying 3 different things to him. It's been so long since this happened I can barely remember the options, but one of the options was "I want to destroy the Lamp!" and another was something along the lines of "I'm here to save the Dwarves," which I selected because it seemed most true to the Hero's character. However, the Elder said something like, "Bah! The Dwarves never ask for help" and disappeared. I have played through the game many times since this and have never seen him again. Anyone else experience this? Please edit if you have more info.