Are you saying that the town should have no legal remedy in this case and that any attempt to stop her from operating her 'business' out of her house would violate her civil rights as a private property owner? I would say that if she conducts her business in such a way as to cause annoyance to her neighbors, then her neighbors should have a right to complain. If she conducts her business in such a way that the only way anyone would ever know about it would be via covert surveillance, then the neighbors do not have a right to complain.
More generally, I think that a search warrant should require one of two things:
- Enough evidence to establish a prima facie case that a specifically-identifiable criminal act has been committed, and probable cause to believe that the search will yield evidence of said crime.
- Enough evidence to establish a prima facie case that a search will yield evidence of a crime.
Specifically-identifiable criminal acts would be things like the theft of a particular piece of property from a particular victim, a bodily injury which was committed at a particular time against an unknown victim, etc. Something more specific than "There was almost certainly an illegal purchase of some sort of drugs somewhere yesterday."
I know that requirement goes beyond the Constitutional minimum, but I don't think the Founders had even considered the notion of having so many complainant-less crimes.