Current play through they all go friendly if you kill the spectator and don't fight them.
Not sure if that's every time, or if you just do it via sneaking and luring the spectator away like I did, but there was nothing fancy involved afterwards. They were all friendly and talked to me (half elf) without any disguises or etc.
But did you talk to Dhourn? He's the one who initiates the hostility after the spectator is gone.