Certain people are extremely sensitive to what they perceive as improper or demeaning interaction, even when it doesn't directly involve them. JAH wasn't willing to let those women deal with it themselves, and doesn't mention even talking to them about it to see if they felt objectified. Instead, she talked to male coworkers, not specifically HR or a founder, about the wisdom of allowing women to hula hoop in the office? What's that going to accomplish?
I understand her view that sexual undercurrents in an office makes things uncomfortable for some women, and I understand her wanting that toned down. But other women (including some feminists) have no problem with much stronger displays of sexuality, and feel it's an affront to women to suppress that. Both sides can't win.