That is right IMO. The IFBB dropped it years ago, and I didn't ever realize it until today.
I do think it is too bad she doesn't have a bodybuilding category to compete in, but that category had its time and it died out. It has been replaced by the newer categories that are more popular with the general public. The contests now are already very long, can you imagine if they added in another women's category? Don't some of these contests go until midnight or later?
If you look at the women's physique competitors from the past few year's Olympias they look like the bodybuilding stars just 10 or 20 years ago. They are pretty well developed. Probably just less drugs, but they train the same. From the lady's picture, it looks like she isn't built as well as the physique are. She could just compete with them.