If there are literally no other JO options for you within a driving distance (and many people drive 1-2 hours each way, a few drive even more), then you have 2 choices:
1) be silent and accept the situation. Encourage your daughter, and let it all play out. She may stick with it, but if her talent and drive is actually not being served with her current training situation, she will likely know it, and she will probably quit at some point in the not distant future. If she is being served well enough, she may have a wonderful Xcel team experience that lasts through high school with amazing friends, athleticism, and work ethic that she will cherish for a lifetime.
2) Advocate. And reading your thread, my gut tells me this is what you need to do as I think you are going to regret not at least trying to advocate for your daughter given the stress you are feeling. Here is what I would do if I TRULY could look at the JO group, the XCEL group, and my daughter and objectively see that her abilities are more on par with the JO kids (I have actually been in a similar situation, and it took me TOO LONG to listen to my gut. I regret it. My gut turned out to be right. ).....
You shouldn't rock the boat if you truly approach all conversations from the POV of "Help me understand how to help and support my daughter" and not "I think my daughter is better than the group she is in."
- If there is a coach who knows your daughter well and might be an ally to advocate for her, start there. If not, then start with whatever coach knows your daughter best. If several, pick the one with most power.
- Schedule a meeting with the coach however your gym prefers (email, through front desk, whatever is the procedure at your gym). You are a paying customer, so even if it's hard to get a coach's time, politely persist.
- Prepare your points ahead of time so as to be clear and not waste coach's time.
- Use this formula:
1) Smile and connect. Thank coach very much for her/his time and share brief sincere compliments of things you like about the program (caring staff, safety, L3 season success, daughter fell in love with gym, etc.) so it's clear you are generally happy and not here to rattle off a bunch of complaints.
2) Ask about this new JO vs Xcel strategy "I'm somewhat new to gymnastics, and I have some questions about the different programs that I hope you can help me understand. After L3, a new Xcel program group was formed, which includes my daughter Susie. I am sure you had thoughtful reasoning for this. Can you help me understand your philosophy on placing girls in JO vs Xcel? What factors in? Can girls ever move between groups? If so, how? (even if you think you know this, just ask to get on the same page)"
3) Ask specifically about the reasoning for your DD (if not addressed above). "Thank you, that is helpful. I'd like to help my daughter adjust to this, and to help set expectations for her so that we are all united in the best path for her. Can you help me understand the specific reasons my daughter was selected for the Xcel team? You won't hurt my feelings, so please be honest...[listen empathetically for explanation, asking any follow ups but not reacting negatively]. Thank you for sharing candidly.
4) Share your daughter's feelings (not yours) and ask about the possibility of JO in her future. "May I share with you some of the feelings Susie has been expressing - perhaps you can help? Thanks.. Since moving to the Xcel group, Susie continues to work very hard and appears to me to be highly motivated. She loves the sport and her teammates. However, she is continuing to express interest in moving to the JO team, as she wants to be challenged more. She seems very driven. I need a way to respond to and guide her as a parent, so I truly need to understand what the outlook here is for her ever moving to JO. Could that be a possibility for her? What would Susie need to demonstrate to be considered for the JO team? What is holding her back?"
Hopefully you were warm and open, which opened the door for some honesty and sincerity from the coach (not appeasement or defensiveness). And so if all goes well, that conversation should shed light and either give you potential hope and a path forward, or at least let you know the door is closed so you can move on from the uncertainty and know you tried.
And for the record, I have definitely seen girls who were originally judged "only Xcel quality" excel in JO. Not all will, but sometimes the coaches do get it wrong. I have had to advocate more than once for my own daughter. She has been on many JO podiums and is now going smoothly into optionals.
Good luck to you and your daughter, whatever is decided.