I would have expected more sympathy from you patio11. An iPhone or iPod makes sense for this woman as a portable music player she uses for work. The extra cost versus a cheaper mp3 player would seem justified as a way to get email on the go. Plus a phone.

I didn't get the impression that her MA or debt burden was relevant since it's clear she is 38 and spent the last while working for her ex-husband. Her rent isn't inexpensive but she has a 7 year old kid. I got the impression she would take a job if offered. Maybe she's having trouble finding one. Look at the U6 unemployment rate.

I don't live in the States and can't comment on the rest. That said, I was genuinely heartened by the approach the company that still employs her is taking to trying to help out its staff. I really hope it works out for them and they emerge from the recession with a stronger business.