RTF is a global modification that replaces all towns in the game.

maybe give Rakshasas to elementals at level six? There are no Thought and Magic elementals on AsKhan.

Rakshasas are not a good option; Dark Elementals would be better.

Added 19 minutes later
Okay, let's review the faction colors again.
Each faction should have one color for its emblem that does not overlap with the colors of other factions.
Haven - yellow
Conflux - blue (green will go to the Lizardmen)
Necropolis - ???*
Sanctuary - turquoise, blue
Academy - ???**
Fortress - red, purple
Stronghold - red
Castle - green
* I think brown can be replaced with purple or black and given to the Necropolis.
** The situation is similar here: We can leave the Academy orange, or we can replace it with another color.