I've played the game multiple times now and Gareth has been problematic. If you save Jonathan, Gareth's parents are affected and he is not happy. If you kill him, Gareth is not happy. I have not found a way to deal with this - perhaps there is no way; perhaps my build is not up to this particular task. What has happened every time was Gareth showing up at the Elf Temple in a rage. I've tried all the possibilities I was given and the end result is the same; one of two - help him or fight him. I have yet to save him if I help him but his ghost's statement is likely not much different.
So, is there some way of keeping Gareth happy? He was an honorable leader until depression kicked in, after all.