I'm a parent too, and have seen my share of bad dancing. What I would suggest is re-evaluating the studio as a whole. Did all of the age groups seem off? Even if the students executed well, would the dancing have matched your taste? Given that a studio has only a limited amount of contact time with each class, do you think they balanced it correctly between fundamentals and technique, on the one hand, and the recital piece on the other. More broadly, are you dissatisfied with the quality of training in general, or just the recital?
There are a lot of things that can cause "spaciness" at a performance: general stage fright, dancers not familiar with the costumes or lighting, an over-long recital, performing too late in the night, a poor choice of dressing-room recreation, something about a particular teacher. Did you sense spaciness in all the pieces, or just some?
That said, from the tone of your query, I'm betting that it is more than just the recital that's your concern. Unless your area is extremely rural, there's more than one studio around, and this is the time to --discretely-- evaluate other studios. After the recital is as good a time as it gets to make a change. Even if there are additional costs (more expensive classes, forfeited deposits, whatever) it would be cheaper than coaching for a duet.
I think you and your friend should talk to parents outside your studio, observe other studio's classes, go to other recitals, (as prospective recruits, you might be able to get a cut rate on the tickets, but either way, it's a worthwhile investment.) There is probably another studio that better matches your needs.
Since I'm not a dancer myself, I couldn't point to particular things to look for, but I was struck by the list Spangles posted a few months ago on the topic of "Kinderdance." Yes, Kinderdance is too young for your daughter, but the fundamentals that Spangles listed still seem relevant for your case.
What I'd try to sense at a recital is whether the older dancers dance like you'd like your child to dance, after she gets that type of training. Have students mastered the fundamentals? Do they dance in unison to the level you'd expect? Are they having fun? Does the choreography match your taste? Are the pieces properly and sufficiently coached?
I think most important, though, is to find a teacher to nurture and to guide your daughter's enthusaism, rather than to misdirect it (as your current studio seems to be) or to squelch it, by requiring more precision or committment than she's ready to give.
Hope this helps.