Prokaryote or Eukaryote ?

I am interested in peoples views on why, it seems that a eukaryote life form was favored by natural selection when prokaryotes have been so successful. I understand that a eukaryote lifestyle enabled living forms to adventure into many different environments etc, and that sexual reproduction enabled greater gene (phenotype) variability. I am floundering however on my understanding and would appreciate the assistance of others who may have thought more deeply on this topic so that I can address other questions I am pondering. Cheers George :)
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