I have one about the same size in a tank with baby CA cichlids, as well as loaches, plecos, and a ghost. He is active, eats well, has really nice color- his fins have definately gotten a red tinge to them lately, but he's still fairly shy. I had a fire eel with him for a while, lost the fire eel to it's curiosity in the filter tube (( My fire eel was extemely interactive and would swim to me for food.
If the cichlids are relative in size, they should get along fine- if they are sig. larger, then, yeah, they might pick it to death.
its a really peaceful eel. it wont bite the fishes becuase it has a really small mouth. the only thing u have to worry about is giving it food becuase its blind and relies on smell so that means its a slow eater