Sure. Sometimes it's pretty smart to screw other people over. I guess it just depends on what kind of person you are.
And she was "nearly destitute" because she refused any and all offers of help. The landlord even offered to give her $14k in go-away money but she refused.
Currently it appears while the unit is illegal, there is no penalty for having rented out an illegal unit for a dozen years. The "penalty" is that you get to evict whoever you had been renting to (which means they lose on their renters rights) while you get to keep all the money.
She sounds like an absolute pain in the ass, but neither party was nobel.
So what is your actual issue? Are you upset someone bought a property with an illegal addition? Once they bought the house, what would they have had to do to retain "nobility"? Let her live there rent free? Immediately kick her out? Re: "until it was opportune to kick out the nearly destitute leasee", again, what is your expectation here? Allow her to perpetually turn your house into a dump, rent free, forever, because she is old and you'd be taking advantage of her in some way by not letting her live rent free in your house forever?
How you make so many intellectually dishonest points in a row while attempting to mock others is just shocking.
The tenant seems like a giant pain, but the landlord is guilty of illegally renting out a unit for years. She shouldn't have been able to remain there and the owner should not have been able to profit off his illegal dwelling.