I'm glad me and my mate weren't the only ones to see this from two sides!
The other thing to consider is, this means that IF Gabos does apply the damage through to a different non-elusive target, he would also receive no damage because his original target IS being elusive?
And also, if he fights an elusive creature AND applies the damage to a different elusive creature, the same result occurs. Gabos puts 5 damage through, suffering nothing back? Seems powerful.
(I'm not too upset, I own both decks we played with.)
But I think I prefer the viewpoint that Elusive "should" stop the damage getting through at all. Applying damage without a return hit at all should be covered by a form of either Skirmish or possibly Assault (if powerful enough).