NAh, silly you knock them down and when they get back up they respawn Saw and Hammers.
Oh, I owe you an appoligy or its a bug as Maylaner mentioned, I hate giving bad info.
I could have sworn I got Fire Mage from him, but as I started a new game with Patch 2, now he doesn't offer it to me.
I even tried setting my Rep to 100 with the Rebels and Vanguard, I really didn't do anything different .
Omg, except Liberating towns, now I wonder if thats it?
I had Liberted 3 towns I think, Adern, Cape Dun, Montera and Gotha.
Wait does Gotha count since the are more guarding it, than occuping it. well either way I had killed them all too at Gotha.
Edit
Also Vanguard since I killed all the Commanders and Orcs on the way to the Castle, but again I am not sure Vanguard counts as being Liberated, wish I knew more or there was checkable stats for Hostility State as there is for Friendly State, so you could know when to be careful, doh!