Depending on what you are doing and your own overwriting dominion there are a few ways to deal with illithids.
Hopefully you have a high magic pretender so you can get a good magic base and recruit some non-Iron Faith casters (Jade Priestesses, etc)
Use your Templar as mop up. Have them hold until your Main Cannon Fodder (LI) engage then have the Templars come around the sides and cut through them. If you have a high drain scale they should be able to resist some of the effects; but unless your pretender is prepared, you have to just throw alot of inexpensive troops in their way to eat while you cut them down with your Templars.
As Lord Airoch stated, I use pikeaneers against giants or salamanders in the droves and try to round around the back to cause morale failure. Also Pikeaneers and Crossbowmen work with Nief Jotuns. If you let them get close enough (with enough hold orders) the Crossbowmen miraculously don't shoot their own men as much and can tear apart those giants in a few rounds.
Edit: If you have any summons or items that summon (Imps, Mist Wolves, etc) and enough use of the hold commands, you can save yourself alot of headaches dealing with races that like to chew up poor ulmites
[ November 12, 2003, 07:18: Message edited by: Zen ]