How did you infer the site was deindexed? They said specifically by typing the URL of the site, it would show up.
"...but if you look for photo quilts or any similar search term, Portrait Quilts — which for years was always the top result — no longer appears."
I'm being a little imprecise, but her site was deindexed for a bunch of search terms that she used to rank highly for.
Additionally, far less than <1% of the people who use Google get past the second page of results. Getting your ranking penalized by twenty spots is a death sentence.