Look, crazy people, Marines and snack cakes can be called Devil Dogs. In no case are you not a raving lunatic if you think that what you think is a "devil dog" is something that needs to be hung from a tree by its neck and burned.
And, to be fair, I doubt it was reading the bible that drove her mad; I'm sure she was mentally ill by no fault of her own or a book. Whether or not bible obsession is a clue that there are underlying mental problems, that's another story. A person exhibiting the behaviors her neighbors describe, that's a person I would watch closely and keep my animals, and children, far away from.