Kristin Monday needs to move. The airport is much better to the local economy than she is.
When I'm not at my "real" job, I'm at my "fun" job working at the local airport. I have never become sick from any exhaust fumes, and I can guarantee I have been exposed to it much more than any of those hypochondriacs.
Dare I say I kind of like the smell of it? 
The biggest reason folks go to Sedona is for tourism.
The bunch of times that I have been there, I have never seen any type of "industry". At least not as it would be classified around here.
That lady is completely full of crap. I would wager that there is three times as much pollution and "fumes" from vehicular traffic in the Sedona area than could ever be produced by air traffic.
Sounds more like a case of "I bought this house so I could have "stuck-up snob status" and now wants to keep the tourism down so that her and her ilk can try to keep Sedona to themselves.
I would say that that area is one of the most scenic places to visit in that part of the country, by land and ESPECIALLY by air. I do not believe that there will be less air traffic if there is not an airport there. Just less planes landing and taking-off.
The touch-n-go/6.5k rules are very reasonable.
My question what does the Chamber of Commerce think about all this? I would also appeal to the Arizona Dept. of Tourism. I certainly wouldn't just roll over on this issue.
Contact the EAA, AOPA, etc. Get some pilots fired up about this.
