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She should've just taken it down. Jesus is no longer on the cross anyway; He has given believers His Holy Spirit to remind them of Him. Much ado about nothing, imo. If she wants to fight it she may win. But what is she winning? The right to hang a dead image back up?
They probably wanted her to move the cross so that the "reports" would go away; but that didn't work; so they told her to hide it out of sight; but since she wouldn't do that, they're probably having to actually investigate the "reports" and she's probably suspended pending investigation as to whether or not she's using class time and her civil authority as a public school-teacher for "imposing her religious beliefs", which is unconstitutional, and unbiblical.
There's also a good chance that there is a butt-hurt student trying to make everyone miserable.
There's is the fact that an image of a man being tortured to death on a torture device being on continuous display is not entirely conducive to a learning environment... but her cross doesn't seem to be so gory or grotesque as to be a detract from the overall presentation of the area shown in the photo, let alone the whole room... it isn't placed in an imposing space, or take up an imposing amount of space. It doesn't seem to have naturally alluring characteristics (flashing lights, or even gold/reflective metal). It is a modest cross and a modest expression of faith which she is entitled to.