What this sounds like to me is like in King Arthur, where you periodically have the opportunity to embark on little text-adventures for fun and profit. They came with rewards like special generals, artifacts, spells, and the like, and were kind of the only thing keeping me playing the game.
They really helped to breathe life into the game, and make it feel like more of a living world, and helped you to think of your generals and leader as having distinct personalities. Like "well, diplomacy seems like the right option, but Gawain here hates elves so everyone gets to die" kind of stuff.
Another game it reminds me of is King of Dragon Pass, which is basically nothing but decisions about the running of your clan and diplomacy between tribes (and a lot of cow-theft for good measure), which I'll give a link to an lp of it, seeing as it's incredibly obscure. http://v2.lparchive.org/LetsPlay/KODP/index.html
It's my feeling that events like in King Arthur and King of Dragon Pass could only improve Elemental, if only for providing a more flavorful and unpredictable experience.