It's always a shock when a child we love is pulled from our care, and it happens for various reasons. Parents find care that is closer to home, parents find cheaper care, parents find relatives to watch child, etc.
I imagine it's equally a shock when we choose to term a family.
For what it's worth, watching the children of friends and family almost always ends up bad. Take a little comfort in the fact that a few months from now, that provider will most likely be regretting her decision, but will be stuck and unable to do anything because that family takes up 3 spots of income. That's a bad place to be in.