Ok so long story short, does peaceful way allow you to in essence play 2 reversals, or does it just allow you to play 1 without having to pass the CC?

thanks

Peaceful Way just lets you play a reversal, it doesn't say play an attack "as a reversal", so it's not using the reversal step or the response ability.

Effectively it lets you play two, but keep in mind the wording (e.g. Lu Chen2 would not be allowed to use his E: on a Reversal played using The Peaceful Way, because the attack was not played "as a reversal", it was just a Reversal that got played [via TPW's effect]).