When I create something while on the job, my employer owns all rights to it. If I decide to email it to my brother-in-law because I think he might learn something from it, my employer would be perfectly within their rights to fire me. This is all made extremely clear in a short, easy-to-read employee manual. Apparently, the police in this instance are not subject to such a simple control. They should be. They took the taxpayers' property and used it for their private ends. Totally unacceptable.
Clearly, we as a society do not want to prohibit distribution of photos simply on the basis that they make some people extremely uncomfortable, and I would not have a problem with a passer-by who happened to take a photo of the accident scene selling it. The victim here, even if she were to have survived, clearly had no expectation of privacy since the accident was in a public place.
If I was as rich as the parents in this seem to be, I'd remember that revenge is a dish best served cold, and would not make any more of a public fuss about this. There will be plenty of time to devise a perfectly legal and appropriately devastating response to this, should they decide those responsible need to be reminded of what they have done.