You are correct. The thyroid blocking medicine will not kill off the thyroid. She is just putting off the inevitable. Please remember, we with graves disease do get a bit irrational.
As far as alternative medicine is concerned, she should not be taking anything with iodine in it for that can be dangerous to us.
Please tell her that the longer she puts off treatment the worse her eyes can get. Also, she risks damaging her organs, including her heart, by postponing treatment.
Good luck, I hope this helps