Everyone seems obsessed with height...so much that our coach has a blurb on the team web page that states she works with girls of any height.
HOWEVER with that said, you will notice that Kylie Dickson competed for Belarus where competition is a bit less intense, not the USA....but she still went to Rio!!! She can sign her name 'Kylie Dickson, Oly' and there aren't too many that can do that!!
There is much said about my kid being a short little hobbit(your daughter would tower mine-and mine is almost 11, she still hasnt even made 4'....and JUST made 50#-it was such a struggle to get there, people often mistake her for 5-7yo, it drives her crazy!!).
Personally I love watching the taller girls at competitions, they're so gorgeous with pretty, flowy lines!! Almost like dancers to watch!!
To that end, if you daughter finds it too much of a struggle, she can always move to another sport, using the skills she learned in gym!! Dance, diving, just to name 2....but so many skills learned in gymnastics transcend a specific sport(the determination, hard work, self esteem, etc)
Yet, things change and you never know...my oldest towered everyone in Kinder, she was expected by doctors to be close to 6'(her dad is 6'2", I am 5'7-1/2" & she was like your daughter and always in the 99th percentile when young)....then she played softball, had knee surgery at 14, quit growing & is now 5'2" at almost 22.
Like all thing, you need to think about what your goals are for the sport. If it is for your daughter to enjoy herself, have fun, be a part of a team, find an enjoyable passion, personal growth, increased balance, self esteem, etc....then you are in the right place and will likely get all that and more!! If your goal is for your daughter to be the next Simone Biles, with international recognition/fame, and nothing else will do....then you may be sorely disappointed and not enjoy the sport.