I need honest opinions, no feelings will be hurt.

Leia had her puppies a week early on Tuesday.  Out of six, five survived.  They're not thriving very well.  One almost died Tuesday night, another on Wednesday.  She is trying to nurse them, but her milk still hasn't come in, so we're bottle feeding them ourselves every two hours.  The kids have been handling them since they're helping with the feedings.  Leia rejected one, so it is being fostered by Amanda.

Leia was abused by her previous owners.  It has taken a long time for her to not flinch when we reach to pet her.  She is very food aggressive and has to be fed seperately from the rest of our menagerie.  Whenever visitors come over, she has to be put up because she snarls at strangers.  A few times, she has snarled or snapped at the kids over their toys, or such.

Today, we were showing my Mom the puppies in our driveway. Savannah, Noah, and I came in the house together with the pups.  Shadow, our 8 week old kitten,  had fallen asleep in the kennel.  Before the puppies were born, that was where she always slept.  Leia ran into the kennel, grabbed her by the throat and began to shake her.  Savannah was already at the kennel door putting down her puppy when this happened.  She screamed NO, but Leia kept shaking her.  Shadow escaped only to be pursued and shaken by the throat  6 times total.  Leia was snarling, snapping and growling at the three of us while this was going on.  Shadow ran past Noah, Leia tried to climb up his front, snapping at his face as he screamed.  Noah was trying to climb up in my bed away from her but she kept on going at him.  She chased under the bed after the kitten.  Savannah was on the other side and Leia went after her, biting at her stomach and catching her teeth in Savannah's shirt.  I had to hit her several times with my hand, then finally with Matt's cane to make her let go of savannah.  She then went for the kitten again and kept shaking her and trying to rip her throat out.  She had the kitten by the throat on the floor and was using both paws to hold it still while she pulled with her teeth.  I had to hit her hard a second time with Matt's cane before she finally released the kitten and we chased her out the back door. 

Shadow had to be resuscitated.  She was really still for about ten minutes after I got her breathing again.     This was four hours ago and she hasn't done much but slept.  When I put her in the floor to make her walk, she is really wobbly and can't stay upright for long.  I'm hoping she survives.  I called vet and they said if no bones are broke and no bleeding, there's nothing they could do for her.

The kids are both very terrified.  Savannah was shaking and crying for awhile.  Noah was hiding in the bathroom with Blankie.

I'm terrified Leia might try this again.  She is now snarling at me when I try to retrieve the pups for feeding.  Attacking the kitten was terrible, but I understand she thought she was protecting her babies.  Her continued attack, and going after the kids is inexcusable.  I cannot have dangerous animals around my kids.  The kids could not fight her off or escape her.  Do you think she needs to go to a new home?  Do you think we should keep her and see if she nicens up?  She has been aggressive before, but never to this level. I'm concerned that since she has attacked the kids once, they could easily be her target again.  I'm incredibly tired from feeding the puppies, so I may not have the clearest perspective right now.  I'm asking for honest opinions.