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I ended up a) saving her in the siege b) talking to her a lot whenever I was in the Hold and then c) she wanted to get down. Don't think I ever sold her any Sav.

Using it on Taivra is the best use if you want to solve this peacefully. However, if you want a 100% pacifist solution, you will have to basically sign away huge amounts of power (lore) to the Queen. If you are not fine with doing that all the way to the end, you might as well attack them...

The only reason I am putting up with her is because there's teasers for more content and a potential quest with her. However, if you did not remove her from your game when you first fought her, you can still be rid of her, according to William's notes. If you really regret not dismissing her...