There's a test every 5 years after iirc 65yo where they check things like response time, if you have enough strength for handling the wheel completely unimpeded, and if you aren't suffering from dementia. At least that's what I've heard from my grandparents about the tests they had to do. If that doesn't cover the age risk, imo that test would be the thing to fix. Not sure how strict those are in the USA

Since the article doesn't speak of her well-being, I don't think we can judge here whether this woman should have taken herself out of society already (from what I hear, the USA isn't exactly public transport or walking friendly, assuming she can still walk distances in the first place, idk what old people are supposed to do there)

The other three factors you mentioned were not at play here according to the linked article. But I agree in general of course, and in those cases I don't disagree with extra punishment (and/or, the better preventor: increasing the odds of being caught)