I'll agree with you that Karpinski should be turning BFRs into LFRs too. However, I will say this - General officers don't leave the service to become shift managers at Wal Mart. They become boardmembers of large corporations, political figures, etc. The demotion and being retired in disgrace pretty much ruined any chance Karpinski had of getting a deal like that.
Like I said, I still think she should be turning BFRs into LFRs.
Colonel Karpinski, like PFC England, was a reservist. Full retirement bennies are not that big a deal, depending on how much active duty time (Not much she was a reservist during Desert Storm and was called up then as well). Her civil service, assuming she was a Reserve Technician for many years, would be more than her reserve military retirements. If she was a "pure" reservist, that is one not serving full time as a so called "technician" in a civil service status, then the retirement is really not a big deal, and she was self employed as a management consultant.
The humiliation of being reduced in rank OTOH probably is a big deal, to her at least.