The only loss is Hizi losing xp, you can recover from that. 1 Level goes farther when you are a higher level than Hizi. You only lose when she can't fight back. Though I've also only fought to win against Catzilla when I was level 100 so I've never realy ran into the problem of her leveling up. I actually beat Catzilla with mostly common items recently and found a way to tell if she is going to appear.
Also I don't "Have" to be a masochist. I just don't feel the pain you do.