In both alternate realities(this and Remember Nothing), Gabrielle's got an anger management problem. Slave Gabrielle kills Myzentius with a song in her heart, and Playwright Gabrielle burns that b*** down(Fates' tapestry)!
Caesar is not that bright when you get down to it. Sure, he figured out that betraying Xena is what ultimately led to his downfall in the 'proper' reality, so he changes that. And then goes and does it again, expecting a different result.
Side notes: Alti's bra top in most of it looks similar to Gabrielle's Amazon Queen top in The Quest. And Gabrielle must have had the fastest horse in the world. She was able to leave Rome and get to the Fates' temple in Greece in the time it took the guards to take Xena from the prison/dungeon to the crucifixion area.