I think Machiko Yamada is a great mental coach. It's no accident that she was the first coach of many top skaters in Japan, including Midori, Mao, Miki and Kanako. I think it's really rare to find someone who has the gift to mentor children to have a mindset required to become a top athlete, so I really respect her for that.
But... she is an awful technical coach!! I mean, if only Mao had someone like Mishin or Nobuo Sato as her first coach, she wouldn't have the technical issues that she has now, though, it may well have been that without Machiko Yamada, she may not have ever dreamt of becoming an Olympian figure skater in the first place.
I think Machiko Yamada should continue to coach Kanako to nurture her mentally, but she should pair up with a competent technical coach who can teach Kanako to stroke and jump properly.