I don't have damsels, but I think they can still be cool, when they are huge and duller colored, if not especially pretty. I'd imagine you could keep a damsel like that with an eel, since they inhabit different parts of the tank, and the eel could probably stand up for itself, or at least find plenty of places to hide. Not even my most aggressive fish have ever bothered my zebra moray or Brazilian dragon moray.
Maybe keep it with a more bottom dwelling large aggressive, like one of the big hawkfish or a grouper. I think if you added the damsel last, you could keep it with some of the more assertive wrasses (NOT a harlequin tuskfish), maybe an adult dragon wrasse. And of course, you could try it with triggers, probably one of the Rhinecanthus. I wouldn't want to mix it with fish that are so aggressive that they tank is constantly in turmoil.
One of the reasons I don't keep damsels is that it can be so hard to find compatible tankmates.
BTW, all the suggestions I've made would require at least a 100 gallon tank, preferably a 125 or bigger. With territorial fish, it always helps to give them extra space.