My son (5) does this. He CAN read really well but I know he has NEVER EVER read at his level at school (possibly not at home where I can see either). I know this cause when I start a new bedtime story with him, he reads phrases over my shoulder, asking me to hurry up to the part where it says"......". When I suggest he reads the book he quickly states that it's too hard, there are no pictures etc.
It sounds as though you have a plan now, some other books you may want to look at: Little Women (Louisa May Alcott), Judy Blume books are all awesome, Sue Townsend books (Diary of Adrian Mole), ! When I was her age I also loved to read the pre-teen/teen girl trying to figure out her life kinda books.
I'd say let her read what she wants to read - as an adult I recall re-reading a lot of Enid Blyton books like Naughtiest girl in the school etc over and over. I just really enjoyed the stories
I'd really say let her read what she wants - and then every now and then select 5 or 6 new books and let her choose 2 from those to add to her collection (these could be closer to her level if you wanted)
