I think you are exactly right. For one thing, we really don't know that Mrs Smrekar said things in the order that they were reported. I have, and many other WSers have pointed out that even though the media uses quotes, many statements are out of order, words left out, context removed, the exact wording of the reporter's question is not accurate, etc. Some media are genuinely trying to do the right thing without realizing how it sounds, and others intentionally reword things for sensationalism.
I believe the part about not knowing the Closs's had children could have gone something like this-
Reporter: So did you know Jayme?
Joan: No! For years I didn't even know the Closs's had children.
Reporter: So when did you become aware of her?
Joan: Last year when I saw her get off the school bus every day. (Remember, she had attended school in another district and was bussed to a caregiver' house until about a year ago. Then after the caregiver moved to Barron, Jayme had to switch to the Barron school and was delivered to the Closs house for the first time.)