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Again, that's different. A closer analogy would be the white house chef making food in the white house kitchen, with ingredients they provided, and selling them in his restaurant.1. Photography is an art; she is the artist. Certainly the White House chef would be free to open a restaurant drawing upon the menus and meals he developed when the White House chef.
2. This is no different than Congressman, Senators, Presidents, advisors and cabinet members trading on their experience. It is silly to single her out unless you want no one to write books, go on the lecture circuit or become lobbyists.
3. There is actually a public benefit that is derived from such activity as the body of work contributes to the archive of American history.
Note that what the photographer was planning to do was similar to what you describe - take photos in the public domain, editing and cropping them, adding her own commentary, and putting it in a book.