If you count back from the time that the shuttle lost contact with the ground, you'll find that the spacecraft was probably in pieces long before it even got to Texas. There's no way this was a nearly fully-intact shuttle falling sideways (with no rotation or gyration, mind you) at an elevation of 200,000 feet in this view.
To see something at that altitude you'd need something far bigger than even a commercial television camera (and I think FOX attributed this to a person who was using a regular camcorder).
I've seen a piece stating a Cal astronomy person observed the shuttle losing pieces all the way back over CA, anyone hear stuff on this?