When I read that I thought it would be bad, but they look well cared for and I think the fact she does it to help them is lovely, even if it is a little crazy. I just think that many cats cooped up in that smaller space is bad for them, even though they are looked after. I don't think it is animal cruelty by any stretch of the imagination, but I would prefer to see them with more space.
I love cats, but at one time had 2 and it was a pain with just the 2, however I had an old aunt who took in every stray she ran across in our town she was know as Cat Lady, when she passed away they took the cats to the ASPCA.
I could never do that since I'm extremely allergic to cats. If I'm spending the night at a friends' house that even has one cat, I catch a very annoying cold with very itchy eyes, a runny nose, and a TON of sneezing.
I saw this a few weeks ago, apparently her apartment walls and floors are completely covered with tiles to keep down the smell, and all the cats have been wormed, gotten their shots, and have been desexed. The only complaints the neighbours have are about the noise.