I don't understand why you think there's something missing here. The g/daughter has guardianship now. But it sounds like it was obtained in a sneaky way.
The problem is many judges are stupid ~ just go in and lie to one of them on Friday (motions day in many jurisdictions) and they'll give you whatever kind of order you say you need ~ good until Monday morning!
In the meantime you may have a license to kill, loot, maim and mope.
I obviously have no direct or inside information, but my first problem comes with the suggestion that a hospital did not distinguish one kind of POA from another as this is very easy and they are exposing themselves to liability for a mistake like this so are motivated to take care. Second, the hospital would know whether a patient was terminal and that the purpose of a transfer to hospice is meant for terminal patients which would raise all kinds of red flags. Then, admission to a hospice requires very specific documentation, and I don't see that referenced. Just a few things that got my attention.
Terrible to say but if she is a public school teacher, she is steeped in secular humanistic thinking.
I guess that says it all!
Step out of the way and do your duty to die - Gov. Dick Lamm.