S.D.
My daughter has also been the victim of biting at her daycare. I also considered moving her, but ultimately chose not to. I think that your daycare is doing a good job of trying to prevent biting from happening again...however, it may continue to happen for awhile. It takes a while for a child to learn not to bite. In the meantime, many other children are learning that they don't want to be punished for biting, and will not bite (at least, that is what happened at my daughter's daycare). My daughter learned a lot from this: biting hurts, how to be empathetic towards someone who is bitten, and that she doesn't want to ever bite.
I am an educator at an elementary school. What I realized is that at every point in your child's life, there will be children that you don't want your child around. Unless you want your child to live in a bubble, you can't move her every time she is around a child that you don't like. Something else that my daughter learned from this experience is how to get along with others, and to even eventually like the biter!!!! (The biter, after long last, finally stopped biting, and now she comes home telling me what a nice boy he is.) I think that although biting is an extremely negative action, you have to look for the positives that can come from it, and consider it a social educational experience. Like others have said, just because you move your daughter doesn't mean that she's not going to get bitten at the next place. The other thing that you need to keep in mind is that at her age, she really needs consistency. Taking her out of her daycare because of biting isn't going to provide consistency.
Good luck!! Remember....this too shall end.