Having girls score higher in their first year also doesn't mean anything. Probably they just keep them longer on the pre-team, so they are better prepared. But having girls who scored 34-35 repeat the level, might indicate that the gym is more concerned with the placements\gym reputation, than the needs of each individual gymnast.
Of course it means something, it means they have better form and technique in that level. If it didn't mean anything there would be no point in having competitions or levels at all. But, the OP has to decide how this fits into her family's personal situation. The truth is the original gym might be correct that the OP's daughter is not going to be successful at compulsories. They also might be wrong. That's why I believe the door should always be left open to transfer even if the best place for the kid to start is Xcel. They may have to switch gyms to get that.