The Queen is fond of Prince Andrew's daughters, and on the quiet she and Sarah Ferguson have a reasonably good relationship. I think the Queen would be loath to do anything that might upset the two girls, who she sees as innocent bystanders in their mother's somewhat turbulent life.
Sarah is a flawed character in some ways, but she has never once criticised the royal family, and she has steadfastly maintained an amicable relationship with her former husband. Some people might say that £15000 a year isn't much to pay an ex royal wife, and Sarah obviously struggles for money. Her penchant for good living has landed her deep in debt, and that's clearly what is at the back of this latest revelation.
To say I feel sorry for her would be to invite ridicule, but I certainly think the News of the World's reporters sank pretty low in setting her up as they obviously did.
That is what the News of the World does best. Tempts the integrity of ,umm, a higher class of people compared to my station in life which is working class. No sympathy at all. She is as flawed as previous MPs, etc., and hopefully will face the same consequences.
Lets face it, everyday somewhere, someone is trying to make a fast buck or two. And I guess Sarah Ferguson is no different to anyone else who is trying to keep and retain a suitable lifestyle.
If you take account of some of the other royals and their family members, you will see the same format appear, mentioning no names of course.
Should she lose her title!. What difference will that make, very little I would suspect. There are people out there (titled and otherwise)that have committed far greater 'sinful' deeds, yet are still unblemished.
And as for the NotW, its just their method journalism, and that particular newspaper as been doing that a very long time. The other week, this week or next week, the NotW will have some new exclusive, possibly due their own instigation.