Restrictions are different in every area, read yours. Everyone agrees to the covenant when they buy. She did too. She is now complaining because she doesn't want to live by the rules.
Also, MANY people have a cross in their yard and are not sued. Enforcement is because someone complained. I expect this is not about her having a cross in her years, but the "real" story is she p133ed someone off about something else and they reported her to get even.
I personally don't care if people want small a small cross in their yard, it is against the covenant technically, but as long as it does not make the neighborhood look trashy and reduce our resale value, they I have no problem with it.
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