I agree with what everyone has said. If she just made 7, she's not too old to compete lev 3 next year. I promise! At our gym, our level 3 group had one 8 yr old, 1 older 9, 2 10 yr olds, and an 11 yr old. They really want them to score about a 37 before they will compete them. It's unbelievable.My DD has competed with skills she had just barely ready for competition, and skills she had ready and polished. Really, especially in the beginning, it's better for them to compete polished skills. So another year of pre team isn't a bad thing.
I will also add, you should tell the coach about the other girls comments. These kids are teammates. I have had my DD at 2 gyms. 1 where those sorts of comments were rampant and the coaches would basically turn a blind eye to it. And the current gym, where the coaches stress the " team mentality". They do not tolerate that sort of thing. This sport put too much pressure on these kids for these girls to be mean to each other.
I'm really coming back to comment about the mean girls. So much of competing is mental, and the two gyms that score the best around here don't just offer good training. They work with the girls on how to get in the zone at meets AND treating teammates with respect. Coaches can't control every little thing, but it is important to talk to the girls about supporting each other. At her last meet, I noticed dd looked miserable and apparently one of her teammates said something rude before her vault. She had a great meet but looked unhappy the rest of the meet. Apparently this child has been making comments all season to the girls. It really can affect team morale.