While I agree with parts of the analysis, it fails to reflect how Trumpism has contaminated the whole Republican party. All of the Republican candidates are afraid of running afoul of the racist, MAGA-tribe. Haley just demonstrated why she isn't really an alternative to Trump, because, as others pointed out, she was afraid to utter a simple truth that would offend the Trumpists.
So yes, she should be dumped by anyone who cares about democracy, or truth, or inclusiveness, or kindness. Her comments, along with many others that she has made, reflect that all of the current, viable, Republican candidates are just slightly different shades of MAGA red. Choosing her over Trump just gives you a slightly different version of this duplicitous, selfish, authoritarian mindset.