Well, we all know that The Heroic Legend of Arislan is a wonderfully done anime and manga, but all viewers have many questions that need to be answered regarding the story. Since there weren't that many sources of information associated with the Heroic Legend of Arislan, I decided to find these answers for myself.
Answer: In this question, I was helped by a source book entitled "Samurai from Outer Space: Understanding Japanese Animation" by Antonia Levi which explained the reason why so many characters look the way they do.
The first fact we must take a look at is who the author of Arislan is. The manga and anime are based on a novel by Yoshiki Tanaka, a writer who's main goal of the characterization of Arislan is to portray him as an antagonist who does not have the usual characteristics of your typical hero. That is, according to the manga and anime. I, myself, have not read the novel, but I assume the characterization is the same.
While Arislan is not a bad fighter himself, it's his lack of wanting to fight that propels his inner psyche. Note that, in the end of the 3rd and 4th OVA, there is an image of Arislan sitting down in a relaxed position with a flower in his hand. This man is a lover, not a fighter.
Sometimes, when a female artist or writer partakes in an anime or manga project, there are some differences that are noticeable. One of the most famous all-female artist groups, CLAMP, is described by Levi to portray male characters in the same provocative way that male artists portray women. So, since the manga series which influenced the OVA's was done by the female artist Chisato Nakamura, Arislan is no exception to this rule. This could explain why some of the characters (Arislan, Gieve, and Narsus) look and act in such a feminine manner.
Earlier, I had stated that Yoshiki Tanaka was a female writer, and I apologize for the error. There was a slight confusion between the manga and the novel that has been resolved as of now.
Answer: I can not answer this question as fully if I knew the entire story of Arislan Senki. Since the OVA's in America are only up to Part 4 and none of the comics have been translated, I probably only know less than half the story.
However, there are many clues about the ambiguously homosexual relationship between Elam and Narsus. First of all, Narsus is one of the above-mentioned characters who is overtly feminine, which leads some to the conclusion that he's gay. Second, and this may or may not be relevant, Elam is forced to dress as a girl in order to spy on the captured city of Ekubatana. And, third, after Narsus rescues Arfurido, and Arfurido takes an unusual liking to him, all havoc breaks loose because a)Narsus rejects Arfurido's direct advances and b)Elam and Arfurido both quarrel for Narsus's attention in subsequent scenes.
Much like the Mr. Burns-Smithers ambiguousity in The Simpsons, the signs of their relationship are fairly obvious, yet not fully proven. In the Burns-Smithers situation, the joke is merely there for a running gag, but it's much more complicated in The Heroic Legend of Arislan's case. Whether or not the truth will be revealed will depend upon whether Central Park Media will release further OVA's of Arislan Senki.