Consider that "Abby's team" that we see on the show isn't a genuine competitive team from ALDC, rather a team assembled for TV and the choreography, costumes, etc. are all made for TV. I think quite often we're not even hearing the legitimate music the dancers are dancing to, merely having a more affordable piece of music slapped on for TV. The competitions generally shown are either low level or entirely fake, as are the awards we see. The Nuvo competition Maddie & Kalani participated in is genuine and likely won't allow the show to film. Many of the faculty are familiar to those who watch SYTYCD.
The studio my daughters danced with "competed" against the ALDC Dance Moms girls at a comp here a couple years ago. My daughters had graduated and/or left dance at the time. The competition was not a regular competition, not held at the hotels or schools these things are generally held in here and was entirely fake and bake for TV, with 1/4 to a 1/3 of "competitors" usually found at dance competitions. Our studio went essentially to be extras on a TV show, background, atmosphere.
I don't think what's put out there for the TV audience are Abby's decisions, merely the constructs the show requires Abby to perform in. I think Abby was the ideal person for the job -- bankrupt, overweight, the kind of teacher who believes you break a lot of eggs to make an omelette and, voila, an ideal villain for a TV audience to love to hate. 99% of the things that frost the cookies of those who watch the show are engineered by the producers IMO and have no bearing in reality.