Ditto what Gymsanity said. You already get gym mother-of-the year kudos for what you are currently doing! That is seriously above and beyond.
The overarching answer to your original question is that most gyms have two to three different "streams" for their gymnasts. This typically takes the form of a fast-track stream for girls who pick up skills quickly and have the magical combination of strength, flexibility and mental fortitude; a second track for girls who love the sport and are committed to JO hours but may be missing one or all of the aforementioned characteristics; and a third more recreational track (Xcel) for girls who may be missing one or all of the characteristics and don't want to put in JO-level hours
The streaming can be tacit (there is no declaration of an A-stream or a B-stream) but girls are grouped according to the characteristics listed above, with no explanation to gymnasts or parents and even though everyone knows the truth of the matter. Or the streaming can be blatantly out there: gym literature states it, coaches talk about it, etc.
My experience is that at most club gyms, there is mobility (upward and downward!) among the groups. So that is why I personally prefer the former streaming strategy (tacit), because it leads to less mental anguish for the gymnast and less odious CGP (that stands for Crazy Gym Parent) strategizing, gossiping, and otherwise undesirable behaviors. It's like mainstreaming in public school classrooms. Everyone knows what the deal is, but there is the appearance of potential equality (for what that is worth).
Your DD is very young. If you temporarily reduce her hours in the gym to 1 hour per week, it will not affect much, long-term. If, in a couple weeks or months, she is begging you for more time in the gym, you will have your answer as to whether you need to go back to those superhuman efforts to support your girl in her chosen sport.