It sounds like you've got it all under control!
My only worry, and you may have thought of this already so please forgive me if it's redundant, is that by using "I'm busy" as an out - it sort of implies that you think it's a good idea, and would go, if only you weren't busy. So, it might make her feel like she's on the right track, offering good suggestions, and that she should continue to push for stuff like this. (IE Basically, it might positively reinforce her.)
But it sounds like your board member is on the same page as you, so that's good!
It is bizarre that she feels like she needs to one-up you, but that might just be her own issues/insecurities coming in to play.
Anyway, it sounds like they're lucky to have you!