This has turned into quite an interesting thread! I like all the different view points. I tend to evaluate rules on a case by case basis and then base my actions on a bunch of factors, mostly involving whether I'm ruining the experience of others, whether I'm degrading the environment, and whether I'm being 'unsafe' (which is highly subjective) or negatively impacting the safety of others. Usually this thought process results in a decision that's consistent with the rules and/or laws, but not always. In this case, I think this woman made a bad decision, namely because she's negatively impacting the ability of other folks to use service animals, many of whom really rely on these animals. That feels like bad karma to me.
On the other hand, I've stealth camped on a few occasions, being careful to set up and break camp at times it's extremely unlikely others will see me, and I've been quite careful about eliminating any trace of my camping. I've collected a handful of rocks from here and there. I've swam sans 'appropriate attire'. I took my kid off trail above Greenleaf hut a few weeks ago to pee, having just read the sign next to the hut about ALWAYS staying on trail to minimize impact. Look, I get it, but my kid has to pee. We stayed on the rocks and tried to avoid lichen. That was the best choice in the given situation. But it was, strictly speaking, an example of us breaking the rules. There's a lot of grey area. I basically try not to be a jerk.