Some sort of punishment is necessary but I'm not sure the punishment fit the crime. Take away her facebook page before anything else and buy her a journal.
But day-to-day working from home would drive me batty. I kind of need someone around to make sure I'm on task. And I really really need to be around other adults and some socialization or I lose my mind.
I would give up a lot for part-time work though. That's my dream. If I could work 4 or 3 days a week at my same job I'd happily give up benefits (I'd have to) just so I feel like my work/life balance is a bit more balanced.
Also, if you have a hand-me-down one and you use it a lot - upgrade and get yourself one with a timer. I got one for like $80? I think I even got it at BB&B with a coupon so it was cheaper than that. The timer helps because if it cooks at 8 hours on low and I'm at work for 9 hours, it clicks off cook and goes to "warm" after 8 hours so the food doesn't burn.
If either she or her husband suffered a health issue or a lay-off or even a tornado or something, she'd be amazed by how much hard work doesn't really matter in the long run when shit hits the fan.
I now love the internets again. And I give air kisses to whoever started it.