No Dancing with the Stars for Paula Deen
That sounds like a smart move given that her legal issues aren't necessarily over.
For most celebrities on the show (young, old, able/not) - the show is much more a case of being able to laugh at yourself, try something new, and possibly look silly (or maybe awesome...) on occasion. It's not a great place for any kind of serious or sensitive issue.
But if she's on network tv and at the same time there are any developments with the legal case - it'll just end up drawing more attention to the legal issues. Also, if I think of former contestants like Nancy Grace or Tom Delay, they're not people publically known for being silly and having fun. Which the show allowed them to do. Paula Deen is excellent at giving across a light hearted personality - she doesn't need to be stuffed into a sequin dress to achieve that.