My thoughts, exactly.
I mean. What good does that accomplish? A parent can still tell their children the differences between right and wrong while still allowing their children to make up their own minds. That's part of the job of being a parent. I've heard of rebellious children, I will freely admit that I was one of them, but it's absolutely absurd to hear about rebellious parents.
What do you mean when you say "still allowing them to make up their own minds"? Unless you have a machine that can interface with their mind and change it for them, they will be able to make up their own mind no matter what you do.
The only thing you can do is teach them right from wrong. If they refuse to respect your guidance and they choose instead to have others teach them how to engage in grevious sin (and tell them that sin is good), you have to chastise them.
If they are grown up enough to reject your rules and your correction and shove their sin in your face in open rebellion, then you must stop subsidising them.
The daughter is the one at fault. She is the one who rejected her parents and their core values. She is the one who reinvented right and wrong and is completely unrepentant about it. In fact she is proclaiming her new Bible-rejecting immorality.
Her life is now an open sermon proclaiming that blatant immorality in rejection of the Word of God is a proud choice to make. It was her choice to proclaim her sin publicly and I guess proudly.