In my first playthough I'm pretty sure I had that same Never response (was pro-Roche all the way).
I always interpreted it as "Over? F**k you Geralt, I'll never give up!". Totally in Iorveth personality.
In my 3rd playthrough I was giving Iorveth sword, but still continued Roche's path (including Roche wining the due;). And I'm pretty sure I didn't got Never response. Probably same all is lost.
Now, my theory is, as I said before, that in case when Geralt is pretty much Iorveth adversary, he will "never" admit defeat, while in case when he was friend (who just didn't continued with him to 2nd chapter), he'll admit defeat (and drop the "act").
EDIT:
Anyway, I have some saves (both sword combination, with Roche wining duel), and will check this thing soon.
EDIT2:
I checked both cases and they had different conversations. Those lines above are just small fragment of those conversations.
And just as I suspected, first case is sort of "hostile" conversation (Iorveth also mentions what Geralt "did" in Flotsam, plus that he was surprised to see Geralt now), while second one is more on friendly terms.
I don't think Iorveth lost any more hope in second case then first, it's just that he doesn't want to show defeat to his adversaries.
Post edited June 30, 2011 by player1fanatic