Should my wife not drive?

I'm a little confused.
Your wife hasn't driven for 8 years.
But she is not careful.? With what?
A licence is a useful form of ID - is that why she renew it?

https://www.agingcare.com/questions/dementia-starting-486326.htm?orderby=recent

It's your job to stop her. If she has dementia then she doesn't have good judgement anymore.

Read this article.No one is going to do it for you. You are the one to prevent her from killing innocent people.

https://www.agingcare.com/articles/taking-the-keys-if-mom-or-dad-wont-stop-driving-112307.htm

https://www.agingcare.com/questions/how-do-you-get-your-fairly-independent-love-one-to-give-up-driving-486272.htm?orderby=recent

You don't say why you think she should not drive. At any time, you can anonymously request that someone have to take a driving test. Contact your state DOT for more information.

Goodness.
I think a Forum of strangers would likely not hold much sway if you cannot yourself convince her.
I gave up my license at age 72 because I had not driven, because I see what it is like in city traffic, especially with our hills, and because I had limited vision in right eye. I was just told last week that I pass DMV standards with my current vision, and in all truth THAT makes me real scary for what is out on our streets.

I would say discuss this with your wife.
If she will not stop and she is competent to make her own decisions I would say there is little that you can do about this.

Why hasn't she driven, is there a health reason? Maybe she could take some classes from a drivers Ed teacher , just to get a start at relearning

Take your wife to the doctor for a cognitive evaluation. In the meantime, tell her you will drive.