So it sounds like you are approaching this in a sensible way, and any rules of thumb about lists can be departed from when it really makes sense for that individual kid in their context.
The only general point I would make is choice is really nice. Even if in the end she did choose your husband’s college, I think it is nice when the kid didn’t HAVE to do that for lack of other options, but instead could consider other options before making that choice. I do in fact think this is part of why experienced counselors try to encourage “balanced” lists–they have seen too many kids who don’t feel great when they are rejected by a bunch of Reaches and feel forced into going to a “safety”, and want as many such kids as possible to feel excited when they actually make a choice among multiple good options.
So that is part of the appeal of having not just one but at least two Likely/Foundation colleges, and maybe 3-5 Target/Matches. Typically that means having multiple offers to consider, even if no Reaches come through. And that is nice to have.
Again, though, maybe in this case it is less, but I would still think in terms of trying to make sure she has multiple good options to consider even if no Reaches come through.