Killing the imprisoned mage doesn't make you lose reputation, and you can get all his items that way. Just make him mad enough to attack you. He has a cool death helmet that you can cast a death spell with. Not great in my eyes, but hey, another magic item is another magic item, right?!
SO do his quest, let HIM do all the work and collect the magic items, then get them from his cold dead corpse LOL. Unless your good, then mmm you can get them from his "sorry that he got mad at me and I really had to protect myself so I did the only thing I could do and put him out of his mysery. I'll give him a proper funeral" corpse.
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