You have gotten some great advice here, and it sounds like you are feeling much better! I just wanted to share that I have had many of the same thoughts as you swirling in my head this year too....
My DD was pre-team (age 6), Xcel Bronze (age 7), switched gyms and was JO Level 4 (age 8) this year. Level 4 scores sound similar to your DD (high scores so far this year were AA 35.65, bars 9.35, beam 9.1, floor 9.1, vault 8.45). Clearly vault is not a strength! I've caught myself wondering whether we should move back to Xcel -- or thinking it's crazy to spend so much time in the car driving to/from the gym for middle-of-the-pack performance. But then I realize how unfair I'm being! She loves gymnastics today, right now. That has to be enough.
Like others have said, don't worry about whether she will "go all the way." Very few gymnasts do. In fact, very few kids involved in any sport get to the highest level. I wouldn't dream of telling my oldest to stop playing high school & travel baseball because he's never going pro.... So why would I hold my DD to that standard for gymnastics?
I hear you re: the high hours of gymnastics at such a young age. To balance this (and I understand some may disagree), I have allowed my DD to participate in other activities when she really wants to, within reason. She will play baseball this spring (her 4th year doing so), and we will figure out the schedule as best we can for those 10 weeks. Our gym was understanding when I approached them about this (thankfully).
I'm not gonna lie -- sometimes I still find it hard not to compare my DD to others who are progressing faster or placing higher at meets. After all, the very nature of the sport compares athletes by scoring them! But, if I'm being painfully honest with myself, a lot of that worry is more about me and my own ego. (Ugh, that's hard to admit!) Truth is, my DD loves going to the gym every day, whether she places first or sixth or not at all.