I worked for CPS as a brand new social worker and there was always a push to place kids with family no matter how distant because the state doesn't have to pay family to care for a child like they do a foster parent. However in Sherin's sisters case I imagine they will be as conservative as possible when considering where to place her since this is a high profile case.
The discrepancy between kinship care and regular foster is real as regards cost/support to families, although depending on the locale there has been some improvement. Generally speaking it is better for children to maintain a family connection where it is feasible. Many variables, of course, but suddenly uprooting a child and moving them to live with strangers--even the best of foster families--adds additional trauma. Sometimes it's gotta be that way. But it should always be a consideration.