Considering how powerful that swing was, on top of any added abilities the monster parts have, makes him a wandering cataclysm for his enemies.
"Let's piss off the guy we saw one shot a dragon" isn't the most intelligent way to run a kingdom.
Also, the sudden 'exploitation' plot makes no sense. They upped the price far too much for the elves to ever pay. And even selling them as slaves or servants is only a one time amount of money.