I would LOVE if DD could skip level 4. I hate watching compulsary meets. I'm sure it's different when it's your own child, but they are just torture. Her gym didn't compete level 4 for many years and just recently started, but some talented kids do skip right to level 5.
I hear ya... I am not a big compulsory fan either.... the only part that is remotely fun and exciting is watching your child learn, compete and have fun - even if it is at the compulsory level. I think the "skip" from L4 to L5 is usually more related to coaching or gym policies rather than talent - at least at that level.
With your and your husbands knowledge of the sport I have no doubt that if this is what your child continues to want you will do it the right way. For some children L4 is fine, and even necessary. i was speaking to your situation individually. Why waste a whole extra year on L4? Makes no sense.... ok well being that she is only 3 hee hee, I guess the true decision will come much later