Don't worry guys and gals. Xara had made a preventive step to avoid possibility of complete annihilation by the possible purchaser. That's called Xara LX. If Xara would be bought and Xtreme closed as a project by any other company, it would be still possible to continue as most of it's code base is not a property of Xara and the potential new owners. And that's probably why Xara was never bought by Adobe or Corel. They wouldn't do it being unable to eliminate competition this way.
Now the MAGIX is a different story. They purchased Xara not to eliminate the competitor but to gain profits from the Xara products. So it's actually good for Xara as the new owner is interested in the commercial success of the company.