I'll probably be completely chewed out for saying this but it seems like prosecuting this woman is only going to keep more kids in situations like this. Parents who need help are going to be afraid to ask for it for fear of being prosecuted.
Prosecution isn't going to change her mind about anything. She already recognized that her parenting was ineffectual and she needed help.
Please note that I would not be saying this if it were a clear case of child abuse. This just seems very borderline to me. It's obviously harsh and crappy parenting but I'm not convinced it's in the same category as hitting, starving, sexual abuse, etc.