Your transcription of this sentence is correct, while the transcription at IrishCentral.com is wrong. The latter says:
It's just that the debate about immigration laws, about Arizona's law in targeting someone, a group of people...
In the correct transcription she says that "the debate" is targeting a group of people, while in the IrishCentral version, "Arizona's law" is doing the targeting. So, in the second version, her subsequent comments seem to imply that the law is problematic.
So I think you have a point when you say that Freepers have misinterpreted her words, but in the end I doubt that watching the video would change many Freeper opinions.
Exactly who is generating her ugly debate? She implies that it is coming from "Nativists," meaning conservatives. To Bush, the problem is not that leftist media shills relentlessly lie about the law, but that those damn Nativists won't shut up. Is she getting her talking points from the DNC? She seems to be primarily worried about protecting the delicate sensibilities of immigrants, not about securing the border. That is not a set of priorities that will endear her to conservatives.
Like many Americans who tire of politics, she is bothered by some of the crass discourse. Enforce the law!!
I wish she had said that, but she did not. After watching the interview, I doubt she believes it. But I could be wrong.