I think this happens a lot because a LOT of people don't realize how much work being a WAHM actually is. I mean SAHM's are all the time saying they don't have time to do other things, they are overworked (which I totally agree with there is a lot to being a SAHM) but then they find something they love doing (sewing or whatever) and the start up cost is fairly low if you swing it right so people start the WAHM business. Victims of their own sucess demand becomes way high and it is very hard to keep a balance in the family/work struggle.
Me personally I have a very hard time saying no to anyone who asks for things, but unfortunately people don't seem to have a problem with asking, so I usually get stretched thinner than I would like, and well you can only stretch so thin before something breaks, and when it does the business is obviously going to dissolve before the family (we hope anyway). (this dosen't problem I have isn't just diapering or business related, I have gotten roped into doing way more work at school stuff and volunteering everywhere too -I am room mom for my kindergartener and some how ended up as president of the school's PTC LOL)
So as much as it stinks and as much as we hate to see our favorite WAHM's stop selling or go auction only, it is a lot of time for the best for her and her family. Who knows she may be back once she has had things settle down a bit.