Having a good real estate background I can't help myself but to chime in..
The house is what it is. Yes, she might be and probably is asking too much for rent. Again, it is what it is. It'll sit vacant for a while.
Having several rental houses of my own and my real estate license, what she did was just. She has every right to screen her tenants. Think about her position. She doesn't know you from the next guy. She'* trying to determine if you're joshing her with where you work and your income level. She'* merely looking for consistencies in the stories. I do the exact same thing as part of my screening process. And if the people get hasty (like it sounds like you did) I simply won't rent to them. Not someone I want to do business with.
By law, you don't have to tell her your income level. But you did. She can ask it, but you don't have to answer it. Most tenants don't know that. She can only do an employment verification on you.
Furthermore, it'* her rental policy that she takes a credit application. Very wise. I require it too. And most require a fee. Mine do. There is nothing wrong with her requiring a utility deposit. That'* good business practice.
I guess the bottom line is, don't bash her or the policies. What she'* doing is likely a result of being burned in the past. Policies are created and followed to protect yourself. That'* all she was doing.
Now, thinking the house was too much money for what it offered...that'* a different story. That'* why it'* a free market...continue to shop around!
In the mean time, she'll be loosing income on that property.