No, the pitcher does not have to actually look at the runner. If she has the ball in the circle, the runner is allowed one stop and after that must IMMEDIATELY make a decision to get back to the previous bag or advance.
Coaches and parents get mad about this all the time, but the call was correct. With the catcher being three or four steps down the line from the plate, the runner was way more than half way when she ran around the catcher to avoid collision. Safe at home, run scores.