I have read of people still going on this quest, so I assume she's still there... but the word also was that after all the drama with Selian, she had gone into hiding? Is the fact that she remains in her house greeting everyone who walks in and handing them a quest intentional, or an oversight? If the latter, I suggest she be removed and have another quest in its place somewhere else, as it kind of takes a bit of the drama away to hear, "oh no, she had to leave! Oh wait, there she is."
If I have confused her with another, then ignore me (again), but I thought I would ask to get some clarification on if something never happened. Feel free to expose my ignorance!