I don't really see a problem with it, its hardly likely to cause long term emotional damage to the kid is it?
I mean would we be having this discussion if she'd used the idea of taking photos of children smiling and looking excited, just as she was about to present them with a lollipop?... somehow I dont think so...
So whats the difference? cos the kid is upset? Most kids cry half the time anyway lol... happiness and sadness are two massive emotions of human beings.... using different ways of capturing them by photograph seems ok to me. Photographers use all kinds of methods to make kids smile or do daft things on camera... its practically the same only the children cry a little cos they've had a lollipop taken from them, thus it becomes controversial.
In this case its just taking a lolly away so I don't really see the problem, obviously theres a line but in my opinion the photographer hasnt crossed it...
Personally, I dont like these photos much anyway, they have a kind of animated fakeness look to them, but thats just my thoughts.