I am partial to charm bracelets, as they are so incredibly personal and can often tell the story of someone's life. I would definitely not sell that bracelet, and I would try to find out from other family members when, where or for what occasion she bought each charm. Record that and keep it with the bracelet, and it could mean the world to those it is passed down to.
If your daughter thinks they are valuable from a sentimental standpoint, I would keep them as-is. While this was none of my business, my mother had her wedding stones reset after my father died. She still wears the new ring on the ring finger of her left hand, but I really, really valued the original set. I was elated to find out that she kept the setting and just reset the stones. Again, the set isn't even mine, but it means a lot to me. So I can see your daughter's POV.
If your daughter thinks they are valuable from a sentimental standpoint, I would keep them as-is. While this was none of my business, my mother had her wedding stones reset after my father died. She still wears the new ring on the ring finger of her left hand, but I really, really valued the original set. I was elated to find out that she kept the setting and just reset the stones. Again, the set isn't even mine, but it means a lot to me. So I can see your daughter's POV.