Well, there aren't any laws for cyber-bullying which is what she did. Also the judge tentatively dismissed the case against her. While what she did was reprehensible, it would be quite a slippery slope to then charge her with violating the terms of service. I don't think that's a road to go down. Plus, her life will be unbearable, I believe they had to sell their house.
I honestly would have thought that some sort of
corruption of a minor charge, would have been at best, all she could be charged with. As you stated, this whole terms of service basis for the charges, is just a really slippery slope to start.
I'm relieved to hear that they sold their house, and lets hope that people are well aware of where ever she moves too for quite some time... Absolutely reprehensible