No, she's right, this has already gone too far.
I'm thinking of just switching, offering to GM for Jumpers, if they'll take me, as that game has less seriousness involved in it, and I think that was my greatest mistake when I made this. I made it too serious, and people would often rather submerge in their own fantasies, rather than journey into someone else's and abide by their rules and restrictions.
I was fine with Kayi's attitude being her own, but since it's effecting other people, I won't allow it to continue if it's making everyone so unhappy and distraught, as that's not what I intended at all when I wanted to make this game.