Wow! I'm reading through the responses you have been getting and each person who thinks you are being too harsh is rather harsh and judgemental themselves... funny how that happens.
Here's what I think -
There is only so much you can do for some people. Usually, when children are being raised like this there is one of two reasons - they don't know what to do, or they just don't care what anyone thinks and they are going to do it their way (before anyone jumps on me - I said USUALLY).
If they don't know - she will welcome your advise. I'm guessing she's exhausted! Talking to her could be exactly what she needs - there are going to be many problems she'll have to deal with come Kindergarten if she doesn't get some control now.
If she doesn't care - and it's going to be her way no matter what - then your input will be moot. You need to take care of yourself and your daughter and people like that are just too draining (coming from experience)
As far as interaction goes, I would recommend she seek out a MOPS group or other playgroup with children her little one's age. It will not only give her more friends, but her daughter as well. AND I am NOT recommending YOU find any for her. She needs to take the initiative. (BTW-to the mom who said you should find them for her - that is funny.. since right before that she berated you for trying to act like the gals mother...)
A 2 1/2 yr old should be talking - at least a little bit. She needs to double check that with her pediatrition.
I apologize in advance if other posters find this a bit harsh (to them). I'm a little riled up after reading some of the posts to K..
K. -good luck and God bless. Do what you need to do to stay healthy and happy... leave the rest to God.
C.