We used this program in our public elementary. Our experience, like anything else, varied depending on how it was implemented. Our daughter found it to be onerous busywork, but she was clearly getting work that was too easy; the teacher had a set number of groups planned and she was well above the top grouping.
Our son had a great experience for third grade (in fourth he had the same issue described above, so basically a wash). In third, he was in a group of three that ended up doing lots of Latin and Greek root work. The spelling was never difficult (at least for DS and one girl- they were both natural spellers and big readers) so the teacher really worked to alter their weekly work. I'm not sure if this is part of the program or if she was improvising. They basically did advanced vocabulary, and much of their work involved writing sentences, showing meaning and usage of the words, etc.
From your description, it sounds like I would see if you can get her moved to more challenging lists, and see if you can alter or substitute some of the activities. (Isn't that the whole point of the program, to offer differentiated work?) I am not nearly as familiar with the program as you seem to be, so I don't know if changing it up would still fit your school's requirements. I also wouldn't worry about "skipping" lists or missing out on material. Obviously you know your child's needs, but in our experience, our natural spellers (two kids) never had much use for or benefit from straight spelling work- it was pretty much a waste of time, busywork.
