According to the comments in Xen's network-bridge script, the process of starting the bridge with external interface eth0 is thus:
# Creates the bridge
# Copies the IP and MAC addresses from eth0 to veth0
# Renames eth0 to be peth0
# Renames veth0 to be eth0
# Enslaves peth0, veth0 to bridge
NOTE: that doesn't actually seem to be what the script does. For the last step, it looks like it actually enslaves peth0 and vif0.0 to the bridge, but I don't know if that is important to my question.
Why the shuffle? Would it not be equivalent to rename veth0 to peth0 and then eth0 to veth0? I think I am missing something important, but I just don't see it.