If you can afford it without loans, then I think you should let her go to the school she likes best, definitely. Any reasonable parent would. From your post I think you are going to. Many people actually take heavy debt for those schools. Not having to is a blessing you should appreciate.
Going to the most affordable school is settling for the easy if you can actually afford better schools without debt. It’s also unnecessarily taking a huge opportunity away from your child.
If it isn’t going to be affordable, if you’d have to take an extra mortgage (which some people actually do), selling your house (yes, people actually do that) or other huge sacrifices, then I’d understand a parent not sending their child to the more expensive schools he/she got into and likes better. But if it just took extra effort and some sacrifices, I wouldn’t hesitate to send my child where he or she wants to go. College is a huge investment you’re making on your children… do you really want to be stingy about that?
Obviously I’m not talking about sending your child to the most prestigious school she got into. I’m talking about sending your child to a college they feel comfortable with and is going to give them the best academic opportunities.