Doubtful they'll look decent in high def, they weren't shot for it, so they'll look SLIGHTLY better, but nothing to warrant the extra work involved. Although at least on BluRay they can pack more episodes on the disk, so that's nice.
I kinda felt that the Xena ship had sailed a long long time ago. If it was a few years after the show ended, maybe. But the craptacular finale she had, kinda made it unlikely you could have more adventures... and by that point the Xena character kinda ran her course. The show wasn't as fun as it was for the first few years. Got too dark, eliminated a lot of what made the show a fun guilty pleasure. Even my MOM got into Xena back in the day. She still has a wav for her e-mail "You've got mail... Oh goody." that starts out with the aol guy and then goes to Xena going "oh goody". Heck she even bought a couple of the 12" dolls and didn't mind when I bought Xena action figures LOL.
And we still repeat some of the famous lines.
"I have many skills." - Xena
"Mmmm. soft. Like baby monkey!" - Joxer
"Here fishy fishy fishy!" Xena
So... I mean in some ways some of the old fans MIGHT go for a new Xena film if it was similar in tone to the early days, not the confusing later seasons. But I think both Lucy and Renee have kinda outgrown the characters. They COULD pull it off, but only if they did it as "older Xena and Gabrielle". Ted Raimi though doesn't look like he aged a day. Bruce Campbell would be down for it, you know he loved the role. But you can't have Aries... which sucks. Sorbo... eh... he's too controlling. Alexandra Tydings... dunno... what has she done lately. I know when I saw pics of her from some convention a few years back, she looks more MILFy than ever. But the problem with the way latter seasons left us, is that none of the others are still around, so you can't just continue where it left off.
Xena just wouldn't work, unless it was some kinda story reboot. But even then people would bitch that its ignoring the history. So yeah, sadly... Xena would not work as a live action. Good anime style... maybe. MAYBE. Since you can go anywhere in her timeline. Which might be bad. Who knows, maybe they can work in a Xena short for the new Heavy Metal movie LOL... "Xena Vs the Loc-Nar!"