In the examples, the main problem is that we don't really know what "it" refers to.
In the first example, "it" actually sounds like Kathy's work, not her driving.
In the second example, "it" might be the violence or the TV. We can't assume that "it" means the action, because there is no gerund form to connect to.
I think the picture refers to a different dilemma than what the Reference Guide is talking about. Is the picture from the same book?