[Note...I will have to admit that largely I'm speaking from opinion, and not solid fact]
Honestly, unless a private server runs off of 100% its own content...it's taken something from Blizzard.
Models, scripts, NPC names, dialog, all of these things were created by Blizzard.
I really don't understand all the arguments claiming she is innocent. She hosted a commercial game, that was not of her own making. I'm willing to guarantee she used Blizzards content. Period. A private server, unless someone takes the time to 100% recreate the game, models, code, dialog, everything, the simple fact of the matter is that they stole Blizzards content as a method of making money. And so what if she wasn't the one getting on and playing? She facilitated the entire process. She provided a place and method to play commercial content which was not her own.
Saying she's innocent for not being one of the players, is like saying that a person who uploads an illegal torrent is innocent...they didn't download it right, just made it available? Yet for some reason...it seems that you get slapped with bigger charges for facilitating piracy than participating. Yet I haven't heard an outcry for this, except by those who support piracy.
To me...private servers are just another way that people pirate games. They set up or access private servers because they don't want to pay for the actual game, but still want to play it. Sounds almost exactly like piracy to me.