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About will of council (final quest of fighters guild)
This is debatable. Her cause is just, but she still murdered a man to get her way.
Anyhow, this is the kind of decision when nothing really changes no matter what you do. If you choose to kill her, you still have to fight Aelif.
Yes, Aelif is a follower of Molag Bal, she will not allow you to destroy her god's weapon. You will have to fight and kill her no matter what.
People believe what they either want to be true or what they are afraid is true! Wizard's first rule
Passion rules reason Wizard's third rule
Mind what people Do, not what they say, for actions betray a lie. Wizard's fifth rule
Willfully turning aside from the truth is treason to one's self Wizard's tenth rule