While it may be the job of a bus monitor to discipline misbehaviour, I don't think any sort of training can prepare you for that sort of mob mentality. Had it just been one kid, it might be easier to deal with. But when every child around you in participating in this, what can you do? Especially when you've got kids talking about the knives they've got. I doubt there's much she could have done to stop it without escalating the situation even more.
Perhaps it happened like this because whenever it was just one kid, she ignored it and didn't take action (which she as much as admits in the interview). Notice what she does when the taunting begins: Nothing. She sits in her seat and stares forward.
Kids notice these things. And in response, they'll do whatever they think they can get away with.
But don't you think it's obvious that those kids were actively trying to get a reaction out of her? Had she snapped back at them or called them out, I get the feeling they wouldn't stop. Hell, it might get worse. They were trying to rile her, and I almost think her non-action was admirable.
The problem is, she has no official authority. Teachers can send a kid to the office where phone calls home can be made or a kid can be suspended. I doubt the same chain of communication exists for a lowly bus monitor. Sure, she could have called someone... but would anyone really take it seriously?