DD is 12, training L8, was a very successful level 7, repeated last year due to fears, then after gaining most of her L8 skills (although she was poorly trained at her previous gym so there were large/confidence bruising holes when she changed gyms) this summer finally fell apart and was unable to keep "pushing through the fears". She too had intermittent fears of back wards things for a couple of years (I am very convinced it all started as a vestibular issue as she really feels like she can't figure out where she is backwards - and her only scary falls happened AFTER her old coach started trying (albeit nicely) to make her do the skills anyway (BHS_BHS on beam).
DD cried before many practices - but was laughing and happy after. DD also had to deal with her previous coaches literal "abandonment" of the whole team, and dishonesty about new coach/gym. All of this made her very unsure what she wanted with regards to gymnastics - which made the fears/blocks absolutely paralyzing for her. Her new coach (who had coached her as an old L5/6 so they knew and loved each other already) fully expected her to do VERY well as a L8 this year, and pushed a bit this summer - then when DD was clearly unhappy with herself, asked that we all back off. Said to DD and me that although she was a beautiful, talented gymnast, her overall happiness was far more important to her.
DD took a 6 week break. Did some counseling regarding anxiety/making decisions, etc - NOT to address the fears at this point (counselor is both a family and sports psychologist - and a former elite gymnast - and started the process with saying this was not about skills but about DD figuring out what she wanted). We discussed many options of other activities, but as DD put it "I'm still a little stuck on gymnastics". She herself worked out a plan to go back to the gym - initially just to condition a few days a week - and has been doing that fairly happily for about a month. She is having fun while there, and felt at home right away (again, great coach and team mates/friends make a huge difference).
She will not compete this year (she, her coach and I all see no point in her competing L7 again if she doesn't want to, and frankly, right now she isn't wanting to do giants, fly aways or back tucks/layouts out of her back handsprings anyway ). She's not uptraining at all right now either, although starting to work a little front tumbling at her "actual" level....but also feels like her balance is really off. She has the option of going as many days a week as she wishes, and calling me if she wishes to leave early (never has), as well as an open invitation from all coaching staff to do as much or as little as she is comfortable. She is primarily training with the L7 group, but doing her own stuff (both above and below that level). Her HC is letting her drive the boat for now.
Our goal (HC and I) is to let DD have time to figure out what she wants, to allow her to try to get rid of some of the guilt and feelings of failure that she aquired over the last 2 (high scoring and multiple medal winning) years. To learn to see herself as who she is (gymnast and in life) without constantly comparing herself to others. Her new gym has many older kids who had to "slow down" repeat one or 2 times, etc because of fears/vestibular stuff, some of whom are now moving forward happily again, and a couple who still do gymnastics but are working around the issues and may or may not compete. We are in a small region, and there is no excel, or high school gym, but most of these kids were level 7-9 JO athletes when thing got messy, so most would simply quit with a different coach. And I suppose if they didn't LOVE gymnastics they would quit (happily and healthily) with this one.
DD may quit this spring/summer - and if she does after making that decision out of a place of confidence I am all for it! She herself says she feels much happier and much more clarity already being back at the gym - although I can tell she is still very mad at herself when she thinks about all the skills she "could be doing", and I know she feels unstable on beam, and she has now told me about a concussion (mild but with brief loss of consciousness/headache and saw floaters for days afterwards, etc) that her old coaches simply never told me about, as well as she is now starting to describe what it feels like for her when she gets disoriented with backwards skills. She has never been frightened of getting hurt - just of "not knowing where I am while going backwards and twisting my body around" (fulls). And when she's feeling this stuff SHE IS DOING THE SKILL PERFECTLY!!! so I as a mom have had to let go of the gymnast she looks like and wants to be, and let her figure it out. I have all the books, DOC Aly, etc. Her coach has great ideas to break things down into tiny pieces, try alternate skills, etc and again, although she has and will again train elites, she also really just wants gymnastics to be a positive experience for every kid. But in the end, its up to DD.
My DD thought she wanted to do college gym - and her previous coach was aiming at that for her. However, my DD never really thought about what that meant, it was just the pie in the sky that everyone was shooting for - and as she had the talent to make it, she was gently pressured, given time tables to meet, etc. Always in a loving way, but still for my kid it became a source of "failure". (Elite was never an option). I never honestly thought she fit that model (personality, etc) but would support her no matter what. I do think she likes doing gym and has grown a great deal because of it - and that in the past she had fun at meets, enjoyed her achievements (new skills/levels and or high placements) and was strong and healthy. Now she has to figure out what it is she loves about gymnastics, and while doing that whether she really wants to overcome her fears and physical (vestibular and otherwise) limitations in the gym.
I do not believe in letting them quit do to fears (at this age at least, younger kids are different) but I am very supportive of kids deciding that they don't want to conquer the obstacles they encounter in any sport or leisure activity. Identifying the obstacle is key, then making a clear decision about what you wish to do about it - this is a life skill I am hoping DD will gain this year - and then whatever she does with it will be fine with me (and I will keep my memories of all her beautiful fulls, overshoots, yurchenkos and back tucks on beam to myself!).
Hope that's helpful!
as an olympic weightlifting coach i have to add: powerlifting and olympic weightlifting are totally (!) different sports. powerlifting ist abouth maximum strength in three movements (benchpress, deadlift, squat 90 degree). olympic weightlifting is about technique and more technqiue, speed, also some max strength, and more speed and explosiveness, as in the snatch and the clean and jerk. training is also very (!) different. even the barbells and the bumpers are not the same 
