K.C.
I would go ahead and put your daughter back into it, maybe look for a more advanced class so that she won't get bored or talk to the teacher to see if she can have your daughter working on something more advance while the other girls are repeating those things that they didn't get.
Starting when my kids were young, I tried to reinforce certain ideas in their heads...one was that they will have to practice what they love in order to be good, and continue to practice to stay good. I used Michael Jordan as an example, he didn't became a great basketball star on talent alone, he had to work for it and he stayed the best because he kept working on it. Try using an example that she would understand tho! I also told my kids that some things might seem difficult for them to do now because their bodies aren't full grown, but to keep with it because as their bodies grow, it will become easier and easier for them to do until they won't think about it at all, that we all go through this.
I'm a dancer (as a hobby) and there is a thing called 'muscle memory' she is training her muscles to remember the moves and as she grows, those muscles will work more smoothly and fluently, just like the teachers, maybe better because she's starting young. I know that if I don't dance for awhile, I'll be stiff and have to work at it a bit, but because I've trained my muscles to move that way, it comes back to me fairly quickly (muscle memory).
When I was a child, I took piano lessons and when I was about 9 or 10 yrs old, I complain to my parents that I didn't like all the practice time though deep down inside, I loved being able to play. My parents cancelled lessons and I was so disappointed because I really did love to play, I just didn't like the practice time that took time away with my friends who were playing outside (usually in our yard! lol). I still regret not keeping up with those lessons (I'm 41)! Don't let her make the same mistake. If she loves it and you know that she does, have her keep with it until she tells you that she absolutely hates it and refuses to go (which is when she will most likely stop doing it at home too).