Is this a school you plan for your DD to stay at for any length of time? Or, will any reports from the preschool teacher affect admissions to any future schools/programs? If not, if I were you, I would try to first figure out what you want your DD to get out of preschool. If she's getting what you want out of it (e.g., social stuff), then maybe it's fine to let this go.

But then again, maybe there is a better preschool situation for your DD, where the teacher actually knows who your DD is. There can't be that many kids in the preschool, can there?