Hello, TinaTurnerfan18!
I believe Xena allowed Eve to win! Xena wanted that Eve (Livia, then) had Xena's life in her hands; she trusted Eve was going to understand that she was born to do good and that, somehow, it was not too late for her to resume her mission to redeem her acts as Callisto plus the wrong-doings she committed as Livia.
Besides, when Ares saw Xena alive, he didn't give Livia a second thought: his Warrior Queen was back! His favorite warrior; the woman he wanted to give birth to his child; the one person he's ever admired as a warrior and loved as a man (god) was back! Why should he care about a second-class replacement? And who's better to judge a warrior's skills and potential that the God of War?!
Best wishes
Rowanna
Action and power draw you like a moth to a flame. It burns inside you. Ares
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