I don't think they work on completely against each other but they don't sinergize perfectly either. Elude does cover from melee attacks as others have said.
I suggested on a post about Baruuks for the daggers to fly off and disarm ONLY when elude is ON, and at twice the rate, so we don't overlap defenses and we have control over the DR. That way we can stay with elude on and CC and buff allies while not attacking or we can keep the daggers ourself for tankyness while elude is off. That would require desolate hands to have a duration which I don't think would be a problem.