IMO, it sounds like she's a beta type dog. Never can get to Alpha-hood, but tries d@mn hard to get there. I read a bit about wolves and how they can shatter the pecking order as soon as a member shows the slightest weakness in body language, and this certainly reminds me of that scenario. Beta-type dogs are not true alphas. Therefore, they do use force and things can easily escalate to fights. They are also in constant fear of having their status revoked, so they do lash out and they do display what you see as aggression. My honest opinion is that there is no true alpha in this family and the dog is taking it upon himself as beta to protect his status, even if that means lashing at the subordinates (the children and submissive dogs). I would encourage the woman's children to take active parts in training and to put NILIF into high gear. I would also remind the woman that her dog needs its own space. I would NEVER allow any child to get near any sleeping dog, and I certainly would *never* allow any child or adult to get in any dog's face. That is a major breech of dog etiquette and I would go so far as to say that any resulting bite is not undeserved.