Sounds like you are doing fine. It is a struggle and I get that you want to support not push. Sounds like that is exactly what you are doing and gently raising the issues like length so that you DD can consider that and deal with it. Well done to her for wanting to discuss it with the teacher. Learning is a dialogue!
As she works through more projects you can talk about how research and presenting is a bit like an iceberg....what people end up seeing is but a fraction of the work that is put in. The trick is to ultimately have an image of the final product in your head as you research so that you can focus better and avoid too many wandering a away from what is relevant as you research. Mind you, that can be the absolute fun part and is where we learn a lot. It's just learning to balance and she is starting early. By the time workload is an issue later on in school she will have a good idea of how to juggle everything.
How great is it that you or DD is loving school and learning such wonderful skills so young. Well done to you both.