I do love her. She reminds me of nearly all other women of that generation. There was not alot of emphasis on nutritional value, beyond the basic four food groups. My mom, for example, believes organics are a big hype. So, it's not that she's being cheap - she just honestly didn't see any benefits! Also, the big problem with powdered milk is obviously that it's no fat = no calcium and actually draining your bones of calcium. BUT, those facts were not known when those newsletters came out. And folks from that generation aren't all that likely to just jump on the new trend bandwagon, KWIM?
I don't see what's really not to like about her frugality on food. Her basic idea is to buy when cheap, and buy in bulk, that can go for powdered milk or doritos or organic almond butter. Make a pricebook, scout out sales or work hard to find your cheapest source of the foods YOU eat and then buy enough to last until the next sale. I don't believe I ever read her saying that you should eat exactly what she eats. She's just giving tools for shopping - not eating. She does advocate organic gardening, eating most produce that you grew or was grown locally, as well as cooking from scratch, using whole grains, etc.
I have heard she's doing really well. They are financially independent, all the kids are grown, I think she has grandkids now. They do great things like use their time to volunteer, support local charities, businesses and artists, etc.
About what her DD said - I think that's bull! She clearly states in her book that her kids are free to buy what they want with their own money. They are free to earn their own dang money and buy overpriced sneakers themselves
She'll even help the cause, by paying what she would consider a good price for new shoes (or whatever it is), and then the child has to make up the difference. Seems fair to me!