YMMV, this is only a personal opinion, etc, but:
I don't buy Babs caving under the threat of what her arrest could do to Jim. She was Batgirl, and Jim knew, and she knew Jim knew.
Hell, Jim probably knows Oracle's ID. He probably knows Batman's. If there's anybody in the planet who's not going to be shocked, but proud, of their daughter being Oracle, anyobdy who's not going to say "but she went against the law!", that's freaking James Giant Bat-Signal In The Sky Gordon.
And a Barbara who spent her early teens a bit jealous of Jim and Batman's relationship (*coughs*) knows that. Dammit.