I don't think anyone, including Micheal, realize just how unhinged she has become.
I think perhaps Dr. O has an idea... and pointed out to Nina months ago that the smile when what happened with Daisy was being discussed was not normal. I think now Kai for sure and maybe Trina are starting to grasp it... but I don't think any of them really comprehend how far the cheese has slid or one of them would do something.
It continues to boggle my mind that Elizabeth has not suggested to her that she go away somewhere for a while to get herself together... even without realizing the dislodged status of said cheese... as Elizabeth herself has done so... more than once if I remember correctly. And Liz cheese was never this displaced.