A small update..
The other day we were both admiring the indian's new hair.. and then my sister gave voice to the exact same thing I was thinking (how amazing is that?!) "how about this hair for Xena?" - so we tried it.. Looks a lot more like the hair style on the younger Xena (matching the darker+purple look we went for), so we decided to keep it, even if it does not work too well with that cape...