I would terminate too. I'm a bit sensitive and this incident would keep my mind occupied until I solve the problem. And my way of solving problem is to terminate. And I would make sure she knows and understands that I terminated because of her treating my kid badly. I don't care if I'll have to cut down on things because of the loss of income. My family and my sanity comes first.
It is her problem if she needs to find care until she give birth. She should have think about it before she illtreat my child.