I wouldn't think so... I don't find 'pussy' at all derogatory either. Of course, my friends and I have been known to move beyond "What's up, Bitch," to greetings such as "Hey, Snatch" and/or "Hey, Gash..."
So, I suppose I'm the wrong person to ask... :) I generally think most people are way too uptight about language...
Sounds to me like the only way this woman can make her home a "bitch-free environment" is to leave.