I highly recommend that bike, or the equivalents from companies like Trek, Jamis, Giant, Scott, etc. Getting kids into gears is also great and opens up lots more terrain and ability for them.
They have very good resale value or can be handed down very well to siblings, and even then still have good resale value after multiple kids and years of use.
The Specialized Hotrock also comes in a street version with a rigid fork and some narrower (but still plenty wide) and less knobby tires. Keep that in top consideration depending on where she rides. A suspension fork at this level bike, and her likely use, is heavier and not very effective anyway. At your stated use (urban rail-trails, urban parks, packed gravel roads at mountain home) I'd go for the Hotrock street version. Really great kids bike and probably my #1 pick when my daughter is a little older.
Last edited by teterider; 01-12-11 at 10:09 PM.