Chaps,
It is simply a fact that the military represents the society it serves. It has to or else it isn't serving the public, it's serving something else and that wouldn't be a democracy at that point.
Therefore, its values must be based on the societal values. In civilian life, people are fired when relationships disrupt the work environment, not for the relationship its self and it is incredibly difficult to treat a person equally when your romantic feelings are wrapped around your judgement.
If she was screwing a team member, or a young guy on her then-former Squadron, then I completely agree with her being dismissed.
However there needs to be a serious discussion about it going on when it isn't in the same unit. It absolutely does go on and you can't stop it, so you might as well embrace it when it is possible to do so. If that is what she did, and he wasn't under her direct command, then according to societal values, the dismissal was unfair so it's time to make some changes, I think.