I'm 5"3" and I ride a Specialized Ruby Compact 48cm. The handlebars are slightly higher than the seat so there is very little difference between it and my previous straight bar Specialized Vita. It was very easy to get used to.

I bought a used Bike Friday that was close to my size. It seemed fine at first for short distances, but after a 40 mile ride (with handlebars level with seat) my hands were numb and my privates hurt. Changing the saddle (to one like my road bike) fixed one problem, and getting an adjustable stem that raised up the handlebars fixed the other one. I am thinking that I must have short arms because when I lean over too much, there is too much weight on my wrists. I am not talking about a bolt upright position like on a cruiser, just a more gentle lean.

Your wife might want to try an adjustable stem on her new bike (it was only about $30) to see if that is why she is leery of dropped bars. When I want to get lower, I can use the drops, but when I am just cruising along the hoods are more comfortable. She could play around with the height and change it at a later date if she wants.