When you say "I don't know how champions are raised": this tripped me. Your daughter is first a being, a child. She deserves to be healthy, whole and valued for who she is at her core. Your wife makes her own choices. Your instincts are right in trying to protect her.
It is very difficult to see clearly when we are up close in relationships. My kids and I were suffering abuse, but I was not able to see it clearly or call it what it was.
How much do you value sport over your child's health? She can always choose a path to pursue but it can take a lifetime to overcome the wounds.