The key is in the auxiliary verb, "does". So you use the present simple.
- "All she does is sit in her wheel chair and watch us." What does she do? She sits in her chair and watches us.
You can use the participle form in present continuous (not the gerund) if you change the first part:
- "All she's doing is sitting in her wheel chair and watching us."
You can use a gerund if the verb allows it. For example, we use gerunds with "enjoy".
- "All she enjoys doing is sitting in her wheel chair and watching us."
Using the infinitive is certainly possible. We'll use a suitable verb, such as "desire".
- "All she desires is to sit in her wheel chair and watch us." We don't use "to watch" because the second "to" is redundant.