It is a very scary prospect that could possibly lead to complete Presidential control over the entire government. If she, or any other Vice-President, were to make that decision, what is to stop them (or the President from granting the Vice-President) from later deciding that since the Vice-Presidency is "flexible" enough to have some "control" in both the Executive and Legislative Branch the position should also have some partial control over the Judicial branch as well (to be able to sit in on their meetings and voice her or the Executive branches opinion concerning State cases).
The Vice-Presidency has been clearly established within the Constitution, and what Cheney, and now Palin is hinting at, is completely illegal and quite disgusting.