I don't think there are a lot of us who think that scoring out of and/or skipping levels is necessarily a bad or unsafe thing to do. (Short Stack skipped L3).
Please Excuse the novel ahead.
I can only speak for myself... I am totally fine with scoring out of levels. If the gymnast is proficient (as your daughter has proven to be), fantastic--more power to that gymnast. Everyone should be able to compete where they are challenged, yet also have some success.
I happen to be a supporter of the new mobility score of 34. I don't think it is unreasonable to expect a gymnast to attain an average of 8.5 for each event during one meet through an entire season. Even if the gymnast scored a 7.75 on one event, a 34 is still attainable for a proficient gymnast. If a gymnast can't do that at least once throughout an entire season, she needs to continue uptraining, and compete at least one meet as a 4 the next season to show that she is proficient, then either move up to five, or attempt to score out of 5 and move up to 6, or even 7 if she is ready. (I don't feel that it would be necessary, or even right, for every gymnast who didn't achieve the mobility score to repeat an entire season of 4).
I think the concern many (including myself) have is that if the mobility score for L4 was too low, gymnasts who weren't truly proficient at L4 were able to easily achieve the mobility score, (a 7.75 on one event... fine. An average of 7.75 on all four events... not sure that shows proficency for such an important level) then that gymnast might be training/competing 5 before she is safely able to.
And I totally agree with you that the coaches who allow gymnasts to compete where it is unsafe for them should be taken to task, it is a subjective sport. And what one coach or judge might deem unsafe, another coach or judge may not.
Again, IMO, if the gymnast is truly proficient, the 34 should be no problem, and if the goal is to score out and move up, great!