emlaur, Prayers to your daughter that she recovers fast with minimal scaring. You didn't say how old you daughter is, but if she's older than three, she is probably going to be scared of Molly. I'm sure Molly has had a life full of love and affection with you and your family. Your daughter shouldn't be forced to live with a dog who has caused her so much trauma... nobody should.
I am looking at this situation from the outside, of course which makes my opinion easy to express. I was too bitten by a dog, on my face when I was a child (the scar is hardly noticable now). I had played around this dog for 2 years before the incident. Sadly, it could of all been avoided because THIS DOG HAD BITTEN BEFORE.
It has got to rip your heart to make such a decision with the life of your companion of seven years, make it wisely.