> Then I'm even less clear on what her issues were

I think the issues are pretty simple; if you are a US citizen but living and working in another country permanently with no US local income, she found the impact of FACTA and tax reporting obligations to be too expensive and or pain-in-the-butt to make it worth keeping her US citizenship.

There are very real impacts and constraints on ex-pats in this situation; whether or not they are worth it to you is a personal evaluation I suppose.

This is nothing like the schoold debt issue you describe.