My son is almost 2 1/2, and he loves his binky, too. He usually only wants it at night when going to bed, or if he gets really upset as a comfort. I used to get all worked up about when he would stop using it, but now I honestly couldn't care less. I mean, he's not going to keep it forever, and I don't see any reason to 1. Lie to him about a fairy coming or anything like that, 2. Ostracize him for having it and not being a 'big boy', 3. Do something like peppering it (he loves pepper anyhow) or cutting it- I think it is mean (plus he's smart and this would only make him angry with me, as he would know that I could fix this problem for him even if he didn't realize I was the one sabotaging his binkys).
The fact is, your daughter loves her binky. She won't keep it forever. Why is everyone so against letting children have the things that are comforting to them? She won't be this small forever, treasure her innocence. Don't sweat the small stuff.