Knitted elastic is meant for lightweight fabrics and actually can be sewn through rather successfully as the needle will slip around the knitted strands better than through tighter braided or woven strands.
Elastic is made of little rubber strands that are wrapped in threads, then those wrapped strands are either braided, woven or knitted together. Each method gives different amounts of stretch, braided the tightest, knitted the most stretchy.
If you sew through the elastic, the needle is naturally going to nick and/or cut some of the rubber strands. If you sew through the elastic putting it in the waistband of a pair of pants, will the elastic disintegrate and your pants fall off the very next day--no...........but if it's something made for the long haul, it will make the elastic give way sooner than it would if it weren't sewn through.
It depends on what and where and how you're using the elastic. If it's on an outer garment where it's effects will be seen, I wouldn't sew through the elastic itself, knitted or woven. Plus a casing makes for a neater finished look and you can get exactly the amount of stretch you need or want by adjusting the length of elastic in the casing.
If you stitch it down, you're stuck with what ever you get and sewing though it will somewhat alter the amount of stretch--and you certainly don't want to rip it out and sew through it AGAIN. Also, if this is for the long haul, should the elastic later need to be loosened, or tightened, or replaced, it's much easier to do via a casing than ripping out the stitching, replacing and re-sewing the elastic.
If you want to say what it is you're making, I can give you some more specific ideas........if you don't want to say 'outlout', PM me.......
Shylaah