I agree, extremely tacky and so not cool. Though it doesn't excuse her behavior, don't let it ruin your holiday worrying about what she and her family did, just not worth it. If you don't wish to read a book read and handled by a number of people, donate it and go buy a new copy; otherwise read it an enjoy it.
If you ever draw her name you could always do unto her the same. Ask her if she likes it then tell you hope she doesn't mind but everyone in your family and the neighborhood read it first. Just had to be a little devilish. :-)
I personally will not participate in secret santa things at a place of employment any longer. One year at a former job I drew the name of someone I barely knew in our dept. Not knowing much about her but knowing she liked birds I found and bought her a beautiful handcrafted stained glass hummingbird suncatcher. When we went back to work after the party and after the exchange she approached me and gave it back with a "I don't like it!" I cannot tell you how flabbergasted I was. I think it is a bad practice for jobs to allow.