I was shorter than your daughter when I started with my GG125, it takes a few rides to get a feel for the bigger bike. In the long run it was a better idea than a small bike. Now obviously I grew and your daughter probably wont grow any more.
However, depending on how much she enjoys riding, will she adapt to a bigger bike if you gave her that option. Or will she get put off. I know some people who really acceled when they were put on a bigger bike, and some who got put off and dont ride now. I dont know what kind of person your daughter is.
Have you asked her what she wants to do?