As some of you may remember, I'm a fan of Islabikes, since they're beautifully proportioned and equipped - and therefore a tad expensive. However I checked up on her website and looked for her 16" model - the CNOC 16. It has a 25 tooth chainwheel and a 14t rear cog. We have one as part of our club loan bike collection and our smaller riders have no trouble in setting off.
As for the training wheels - these are the devil's instruments
. the only (very slight) benefit they have is that a kid can learn to pedal. However, since balancing is the centre of bike riding, they should learn to balance first. Pedalling they then pick up pretty quickly. Our record for teaching a 3-year old to ride (using a purpose-built balance bike) was about 5 minutes several weeks ago
. If it's a bike with a one-piece crank you can either (a) remove the crank to run it into a temporary balance bike or (b) find another 12" bike and and strip it down so that he can swap from one to the other when he feels like it.
At the risk of sounding like an Islabike advertising agent, you can look at her US website - http://www.islabikes.com/us/bike_pag...Cnoc16-USA.pdf
-and look at the specifications of the Cnoc 16 to give you an idea of what a good setup is - not suggesting that your daughter's isn't a good one, but there are an awful lot of kids bikes out there that haven't been well thought out for kids' needs