'She walked through the forest, and who should she see, but the Big Bad Wolf!'
In this case, should is a way of heightening the drama of the event:
Do and did can be used in the same way:
Should in your sentence and did in mine are used as a mild form of erotema, a rhetorical device that asks a question to dramatize a certain event. It is, in fact, the most common device, otherwise known as a "rhetorical question".