Over Warlock; By defeating her she is removed from the Mansion and you can complete the rest of the Bounty Hunter Questline, but is still possible if you were already on Part 3.
By being defeated/surrendering you get the three choices and she remains for repeatable scenes that are unique to that choice. These repeatable scenes block the Diary that allow you to complete the third Bounty Hunter quest that requires you to investigate the source. Edit: You can still complete the quest if you are on Part 3 before entering the Mansion, and reading the diary from the 'Wait and See' portion.
Just save/load. I don't recommend going through Iron-man anyways unless you want more bonus points, and even then you only need 3 points just for extra base stats while perk points can be gained from levels, or getting fucked by ghosts.
How do you become a queen
Adding onto an earlier post of another saying to enabled Cheat mode, Class changes are all in name only. They only change your title and may change character-screen portraits. There are a few more like this, Pony and Prostitute. Bitch still exists too I think, but don't believe it has a portrait.