Ah, my first long-term experiment. Before Algernon, my methods of "talk" with the enemy were crude at best. Through him, I was able to refine my style.
Actually, I was pretty surprised how things ended up. I just randomly decided to start talking to him, since I saw his ass getting dragged across the decks of the ship on a daily basis, and he reminded me of what it was like being the only Mage in FA during a Thakrian-heavy period - painful and depressing at times. What got me motivated and throwing myself into combat (believe it or not, I started FA, my first MUD, saying "Oh, dear, there is fighting? Well maybe I can pick herbs and people will leave me alone? I just want a dragon and to use magic...") was some fantastic interaction from the gods, especially the EVIL gods. When someone who goes against everything your character stands for tries to seduce or intimidate you to abandon your beliefs, only good can come of it - you either stand stronger and feel really proud and invested for doing so, or you cheerfully switch sides and revel in your treachery. I was trying to achieve that with Algernon.
Now, I'm not sure what effect it really had, but he is still about and has risen in power, so perhaps it contributed. The part about all this which surprised me is the secondary story of Furion. I had "left my mark" with Algernon (muha) and was turning to younger blood - and I really expected some kind of dramatic step-in from Algernon, since he especially could see where my interaction with Furion would lead.
As for the character himself, I think he's very well defined (something which is becoming more the norm than the exception these days, and I'm sure he has a hand in that change). Narissa finds him a dullard and an insipid bore, not even worth attacking, but she tends to write off most non-fighting Light worshippers. There is enough respect for his determination and role that she will speak cordially to him regarding government matters. OOC, I think he's got a great wit and imagination, and I wish he'd stop running away to the mage stables whenever I come around.

One downside is I think he can be a bit indulgent in self-pity, but I think it's understandable given the odds he's been against. I'd really like to see him stand strong and find ways to rise above circumstance - either through sparring and learning combat (eg logs on forums! We're not all evil RL, and we do give advice!) or through characterization and diplomacy. There are quite a few large, strong characters who aren't fighters, and are very rarely considered as potential targets, because of how they play their role. Food for thought, anyways.
Overall, I like him a lot, and I think he's definitely growing into a mentor-style old mage (think Hero), which is a role I'm sure he'll love. Storytelling around the fireside with Kazayn? Yes?