Saira- Once your designs are out for the public to see, people will copy. If big names like Karma and HSY get copied then what makes you think yours shouldn't? I think she should have left the logo on the dress. But no matter what, there is a professional way to handle situations, and you just exploded like a child. And furthermore, she didn't hurt your business in anyway, therefore, you don't need to be bashing her when she had already asked for forgiveness and done just as you had asked!
Umm- You have already realized your mistake and you fixed it right away, just be carefull next time.