Is this really the Wander Bird from Sausalito? If so, that would be a true loss. I actually lived aboard Wander Bird in the City Marina in Sausalito for a time. She had one of the most beautiful handcrafted interiors I've ever seen.
Anyway, from what I read, the sailboat was trying to tack and failed, perhaps by a current against the bow scenario (the ship was downbound). If memory serves, she had an offset prop, as many vessels built before engine installations were common on small sailing vessels, so it is possible, even with the engine in gear, she just couldn't tack (turn) in time, nor did she have the power to back away from the encounter, and was run down. Sounds most plausible to me.
Given that scenario, then the discussion becomes what would you have done in those circumstances to prevent the collision?