Sorry, hate it.
It's my name and I spent most of primary school getting the mick taken out of me (Penelope Pitstop, Lady penelope ect ect ect. Think of any cliched joke around penelope or Penny and I got it ad nauseam)
Through high school it used to and still does get mispronounced (penny-Lope, Pena-lop, penni-loppi, pennel-o anyone?) and people used to call me posh and snobby and were actually pretty horrible to me about it at times.
It also translates really badly over the phone and I frequently get mail addressed to Kelly, Jenny, April, Holly and Alison because people haven't heard me correctly. I now work with people who can't spell it which is a pain when they're sending emails and haven't bothered to double check the internal email directory.
God knows what my Dad was thinking, I have a lovely middle name (Kathryn) and wish he'd chosen that instead. I would encourage you to think again and to be fair, this is just my experience, could well be different for your daughter. 