It's not necessarily a matter of being too old, but if a kid is not in an elite program training with an eye towards that stream, it's pretty unlikely they'll become elite. Even most gyms with high level programs aim to have kids progress to JO level 10 and NCAA gymnastics. If her AAs in L6 are near the 37s it sounds like she physically has the ability to progress in gymnastics (at least at this point) and should keep trying hard. But even among kids who are "elite tracked" and train in that system, a pretty significant portion that stay in gymnastics end up back in the JO system training as L10s (even those who make and compete as elites or in pre-elite often "drop back" to L10 to make their goal getting a scholarship).
Basically the short version it depends on if she is in a program with the capacity to train elites (and they are willing to specifically select her for that). Otherwise I think that JO L10 (esp under the system intended to start in 2013) is pretty high level, competitive gymnastics, and NCAA is a very fulfilling and motivating gymnastics program too, so basically as the kids get older and have a more realistic view of their training and gymnastics (a sense of the possible) their expectations often adjust. There are probably a lot of 6 year old L4s who would tell you they want to go to the Olympics, and virtually no 16 year old L10s who would. And I don't think there's anything wrong with that - they are still fulfilling their goals and their dreams to be good at gymnastics, they just have a better understanding of the reality of the situation.
