We report a study of 2D colloidal crystals with anisotropic ellipsoid impurities using video microscopy. It is found that at low impurity densities, the impurity particles behave like floating disorder with which the quasi-long-range orientational order survives and the elasticity of the system is actually enhanced. There is a critical impurity density above which the 2D crystal loses the quasi-long-range orientational order. At high impurity densities, the 2D crystal breaks into polycrystalline domains separated by grain boundaries where the impurity particles aggregate. This transition is accompanied by a decrease in the elastic moduli, and it is associated with strong heterogeneous dynamics in the system. The correlation length vs impurity density in the disordered phase exhibits an essential singularity at the critical impurity density.