DD (12) has been struggling with fear/mental blocks/puberty/growth spurts and perfectionism since she "wised up" at about age 10.5 as a first year L7 and suddenly any routine less than a low 9 was a personal failure. Has repeatedly lost skills/gained back, refused to push herself until the last possible moment, needed excessive encouragement, some counseling, a chance to stay back at L7, and and a gym change.
She finally admitted that quitting is one of the things she has been thinking about all along....and that she feels like the judges are pointing out all her personal failings, etc. Now, mind you, she was 6th at state her first year L7 and 3rd her 2nd year. Many judges have said wonderfully kind things to her. She is always seen as a "coachable girl with lots of potential" by every coach who I have run into that has worked with her. She's never been shooting for Olympics/elite (not even an option in our area), and for her first 2 years of competition (before she started winning things) was happy to just work hard, try things and have fun...
She's a supportive teammate, almost never misses a practice (this is family policy for all kids and all commitments). In all her years there are only 1-3 kids she has "disliked" at gym/other teams. Even now she is constantly laughing at gym practices, loves her coaches (even the new ones this summer) and was excited to watch the Nationals. She and her brothers can't leave the house without standing back tuck and handstand walk contests....I just can't believe she "hates doing gym".
What she hates is self-doubt, feeling like she can't live up to her idea of perfection, fearing certain skills and then fearing NOT overcoming that fear, seeing some friends be fearless and "chuck" skills badly but enjoy it and "progress" faster than her, and knowing that everyone (coaches, friends, etc) feels she can do those things too when she is ready (how to make herself be ready???). We have spent the last 3 months with a new gym (with a coach she worked with previously and where her brothers train) and are trying to figure out a path for the year. I have taken quitting off the table for now, not to make her suffer, although she sometimes thinks so! New gym is much more particular about progression - MANY kids do 2-3 years at certain levels, and goal even for the younger talented girls is L9 by freshman year (this is very different from her old gym where "no one ever does 3 years a level" was an official policy and she was a guarenteed L8. (Now, she SHOULD be a L8, new coach agrees, but new coach also has set things up so kids are not "failures" if they need to take more time - older girls won L6 last year - and felt good about themselves....goal is to keep them in gym and progressing at their pace).
I don't even know what she'll end up competing this year - if at all. I don't want her repeating a level she has mastered - both because I truely think that's not FAIR to the girls just getting there, and because I know that she will find every deduction a personal failure...and there's just not much room for improvement - even last year her high AA scores went up by less than a point all year (and she has all the allowable skills for L7 now and her basics/form are already consistent and excellent). I know she is an iffy L8 - for this gym, at least. She would make it to state and perhaps to regionals, but would need fairly basic routines. New coach is willing to let her do that - in fact new coach is willing to do whatever will help her confidence - but really recognizes that DD has to find it within at some point...
I don't know how many kids get through these issues - but I do know that if gymnastics is about life/personal development, etc and not about a trip to the Ranch, then the challenge of getting past these obstacles is more important than the feared/lost skill. I know that for my DD leaving something that still clearly gives her a lot of pleasure as well as fitness/etc because of her frustration isn't a lesson I want to be a part of her learning...
I'm in favor of a run to something, not away from something approach to life - so if she had another activity that she really wanted time to pursue, i'd be more likely to let her lay off gym...but that's not it at all for my kiddo, and doesn't sound like it is for yours.
I think repeating L5 would be hard, but if its a common path at your gym for kids in this situation then over time could work well. Repeating L7 last year for DD was a good move, and had everything else been good at her old gym/with old coach she might be a happy ready to compete (albeit with the same basic routines she MIGHT compete at new gym) L8 had she not changed gyms (needed to for tons of more long term/emotional health/family reasons). I personally am not ready to say that because DD struggles she is no longer "good at gym and its not for her" - as that is a set up for giving up on anything that you love and work hard for that's not coming easy in life....hopefully your DDs coach will help you find a path that will keep your DD in gym until she has something to "run to"....