Entertaining outrage notwithstanding, you can't get footage of naked children easily these days. It's certainly much easier to get it if you provide a child with a video camera (something many, surely most, children don't have). It's also, I'd suppose, considerably easier to get them to take and keep the camera if it looks like a doll, especially a doll so many children are indoctrinated encouraged to accept and own and perhaps 'trust'.
So it does work to facilitate pornographic images of children. It's also a doll, an innocent toy in innocent hands. The two aren't exclusive.
So, 'any camera is a potential pornographic tool' - but this one is considerably more so. If kids do use it to make inappropriate films, 'so delete them' - assuming the child has responsible adults to do that, although abuse of children is more likely to be either of vulnerable children where 'responsible' adults are not so responsible, or actually perpetrated by the adults you'd hope would delete the video. And yes, a claw hammer can be used to kill, but they don't often come packaged in a way that would encourage or facilitate their use in that way.
Her reaction to this product, if the reporting is accurate (such a small word, 'if'), is a little strident and perhaps hyperbolic - after all, it may only ever be a single child this pointless and ill-advised product is used to damage.
The reaction of some posters to this thread is, perhaps fairly, equally strident and hyperbolic - after all, we're all a little tired of do-gooders banging on about the children...
I suppose it's heartening, really, that an understanding of the actuality of child abuse is seemingly so rare. The toy isn't designed to hurt children, after all. Nor is the motor car - though we generally accept restrictions on car design (and use) that work to protect children.