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Prison won't help her driving, that's for sure, but what will? She was banned for 12 months. I wish I had your confidence that someone who has shown herself capable of such catastrophically bad driving will no longer be a danger to anyone in a year's time, unless she chooses never to drive again.
Imagine if her job involved operating heavy machinery and as a result of extreme carelessness she had killed someone - would you expect her to be back at work operating that machinery again after a 12 month break? And would anyone be happy to work alongside her?

I agree it'd be safer if she'd be banned from driving forever. But I refuse to believe that a person can't simply learn to drive better, which is preferable, especially if they have something positive to offer to society which requires driving (which I admit is questionable here).

People, dare I say everyone, makes mistakes. Sometimes unlucky people make mistakes that end up being life destroying, and it will always be like that, unless dammit has his way.

If she were drunk, high, unlicensed, on the phone, reading, playing sudoku.. that's inexcusable. But in the absence of any evidence of actual negligence you have to assume a simple weird and tragic mistake, no?