If you're tied to that one location, and will be forever, sure, there are good arguments for owning.
In her situation, I'd just... move. Obviously some people don't want to do that, and owning is never feasible for them. They're in a tough situation. =/
It sounds as though the lady in the article did move, after her Motel 6 stay, to Sonoma County. Still pricey by most standards but not as insane as Silicon Valley. Any number of things can trip people up: cancer, rising rents, car problems, and it's hard to argue that a paid off house or condo would not be a big measure of security when one is 67 and still working. And sadly $80K per year is a pretty decent salary, but not really in Silicon Valley.
As much as I feel for this lady and others in her situation, stories like this inspire me further to be independent, work toward paying my mortgage, further invest in rentals, my ROTH, etc.