While I disagree with her logic and the idea of there being a law needed, I see very little wrong with the idea of keeping graphically violent games out of the hands of children. That's a fine principle. The problem is that it's the parent's job, not the job of the laws.
Also video arcades *DO* exist, I suspect she's a little more savvy than those who think they don't. Locally at least most department stores (like Wal*Mart), Bowling Alleys, Movie Theaters, Hotels, Motels and even a few resteraunts like Red Robin have an arcade. Typically it's no more than half a dozen machines they are there. Though there are exceptions, Foxwoods (one of the Casinos down here) has a substantial arcade called "The Treehouse".
The thing is though is that most of these arcades have already bowed to pressure from politicians and very few companies are willing to put violent or ultra-violent arcade games into their arcades for fear of outcry, or perhaps being sued if someone wants to claim that their children have been warped by these machines or whatever. As a result you'll notice a lot of racing games, and hunting games, and other similar things, and far less in the way of shooters, or fighting/brawling games and he like. Some places still have those, but they aren't distributed like they used to be. Any problem from this direction is extremely mild. She was firing a "shotgun" for anything she could hit, but it is a valid addition to the list.
In short, I don't agree with her, but I think us attacking every video game advocate as a nutjob does a disservice to the gaming community. It's sort of how in retrospect I think it was how PnP RPG gamers responded to contreversy and treated a lot of the critics that caused the problems to last as long as they did back when it was an issue.
I don't think she's being a total idiot here, I simply think laws shouldn't be involved. It's the kind of thing we decided the law in the US specifically shouldn't do a long time ago. I think that if she wants to address this issue she should be pushing the issue of parental responsibility, and then taking the time to review and give consent to things, and keeping an eye on their children (you know, parenting) rather than suggesting that the goverment should effectively put the responsibility on everyone else.