Unfortunately, there has been a lot of quite inaccurate reporting in the press. The full report is here:
http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWCA/Civ/2015/797.html&query=Mitson&method=boolean
It doesn't amount to deliberately depriving yourself of resources that would make you independent. Ownership of the property in which you live is not taken into account for the £16,000 benefits cap. It makes sense for C to buy herself a house and then that at least relieves the public purse of having to pay her rent. Indeed this was one of the reasons behind the decision.
The original decision (which was £50,000) would have meant no benefits for a few years until she was below the £16k mark and then back on benefits.
If you can bear to read the full judgement it is quite illuminating.