You say she isn't a photographer, so what exactly is it that she wants to do, that she can't do with her iPhone? Without knowing this, and what kind of photos she wants to take, it's hard to make a recommendation. Also, what is her budget?
P&S cameras vary greatly in ability and price, as you know. Even the high-end models have 'fully auto' modes making them useable by 'non-photographers', whereas the most basic P&S cameras won't produce significantly better results than her phone.
I would talk some more with her about the situations where she finds the iPhone limiting. Does she want to 'fit more in'? Shoot in low light without a flash? Capture subjects far away? How small does she want it to be?
If she hasn't thought about these things much, that's where your advice about the features worth paying for will be important. For me, if she has the budget, I'd be looking for something that has a wide zoom (24-70 equivalent), a fast maximum aperture and a largish sensor (for good low light performance). Those are the features I personally find the most useful when on holiday and why I bought a Lumix LX100 for travelling light. It isn't cheap or as compact as most P&S cameras though.
If she doesn't need something as expensive as the Lumix, I would look at simple, small cameras with tough/waterproof bodies and a half-decent built-in flash. I took a look just now and there are a few compacts like that, mostly priced mid-range, but the Fujifilm FinePix XP130 is relatively cheap.
5D3, 7D2, EF 16-35 f/2.8L, EF 24-70 f/2.8L II, EF 24-105 f/4L, EF 70-200 f/2.8L II, EF 100-400 f/4.5-5.6L II, EF 1.4x III, Sigma 150mm macro, Lumix LX100 plus a cupboard full of bags, tripods, flashes & stuff.