@allthemiddlechildrenoftheworld it is not clear that she was flying with relatives, unless you have seen that somewhere?
Doesn’t solve the problem that they were unable to move the body in the confined space.
In any event, I think the only thing the crew did wrong here was not taking a couple more minutes to try and move the husband and wife, as there were apparently other seats. If the dead woman had had family on the flight, they could have been moved to sit with her, if they chose. But it was a very rare situation and the crew did a lot right, so still a lot of praise for them.
I doubt airlines could do that (re insurance) unless it was international law to do so. It would be discriminatory. Additionally - the person on your flight may indeed have had very expensive travel insurance, which then would not have changed your situation.