Just to add to the OP's question, how do the Alik'r fit into a Redguard backstory? I was completely stumped when it came to making a decision in that quest because I knew nothing really about what was going on in my Redguard character's homeland. Are the Alik'r a bunch of respected warrior (e.g. like the companions) or are they more of the ruthless mercenary sort? Anyone know?
They seem to be regarded as elite mercenaries, though rather ruthless seeing as they are willing to let one of their own rot in prison for not being good enough to avoid being captured. Said member says they are supposed to be the best of the best, but they do not seem to be honorable in the Companions sort of way, as they can be credited both sneaking and using magic.
This is of course just my impression after the limited introdiction you get in the game.