Hi - I am also about 5'3" and I had the same problem when I first got my Accord. I could reach the pedal but it felt like I was stretching to reach it and that worried me a little. But within a week or so I had gotten completely used to it and don't ever even think about it (until just now!) I think it was just a different fit from my previous car.

The airbag thing worried me too - so I measured between me and the steering wheel and found that there was more than twelve inches, which I think is the distance you need to be safe.

Hopefully your daughter will get used to the feel too . . . good luck.