That "now-deceased" struck me as odd, also, when referring to someone who died 45 years ago. But on further reflection, I think she meant it as now as opposed to then, when they performed at the Vanguard. Of course, it goes without saying that LaFaro wasn't deceased at the time Motian performed with him, so her phrasing was a bit awkward. What she probably should have said was "soon-to-be-deceased".
BTW, on the subject of her appearance: she and the show are based here in Philly, and in a recent local interview she said that people sometimes assume that she's a lesbian because of her extremely short hair. She seems to find that somewhat amusing because, in fact, she's not (and is married, I believe).