The two sentences can mean subtly different things.
She broke the dishes when she was washing them.
There, the breakage occurred during a washing.
She broke the dishes when she washed them.
There, the breakage is said to have taken place at the time of their being washed by her.
The first emphasizes the ongoing nature of the wash. The second treats it as a discrete event. With the first, the breakage might be purely accidental. With the second, the breakage might be a direct result of the way in which she washed them.
When both events are expressed in the simple past, there is a possible sense that the two actions are correlated or coordinated, not merely coincidental.
Consider:
She decided he was a bore when he was describing the proper way to
make a pancake.
She decided he was a bore when he described the proper way to make a
pancake.
In the first, the decision occurs during the description. Perhaps it was long-winded? In the second, the decision occurs possibly as a result of the description. Perhaps it was the very subject of his conversation that resulted in her decision.