Why do you describe it as a vanity business? She collected pencils and then decided to create a business selling them. How is this any different than someone deciding to open a shop that sells Teddy bears? Or someone who decides to make an app that does some niche thing? Isn't the entire point of the HN community to take your passion or interest and turn it into a business? Describing her business, where she has 3 employees and is making a profit, as a vanity business is awfully dismissive.
It was a harsh way to put it. I just think it's dangerous to talk about businesses like this without mentioning that it's likely she's never planning to recoup her investment.
I don't want to disparage her shop but people read these articles and think they can move to NYC and make artisan hot sauce. People doing that aren't making enough to pay for their rent or lifestyle. They just have money from another source.