If she's getting skills, she's happy, the gym seems like a positive environment, she's safe, and seems to have a future there, I wouldn't worry too much.
Agree. If it is the state I think it is and the gym I think it is, you have her at the best place. This gym does not compete level 6. They are one of the few that competes 5 and then the girls move on to 7. I agree a year on level 1 is silly, but the options are almost nonexistent around here.