"Whilst ours do celebrate academic achievements, it’s a primary school so there are no sports teams at school, this stuff doesn’t happen. PE isn’t competitive, it’s team based or stuff like swimming or dance, nobody is celebrated for being good at PE."
Not all primary schools are like this. My kid's primary schools used to go off and compete against other local primary schools. There were opportunities to compete in: athletics, cross country, swimming races, gymnastics, tennis as well as team games such as football and netball. One of my daughters even competed in archery once, it was organised by the local secondary school and all the children who competed got a Sainsburys school games medal (so I assume it was a national thing?) As we live rurally, this was against the other primary schools in the local villages, and if you won you went on to district sports in the local town (competing against all the winners from other primary schools in the county / area). They do similar in the big town near us (different county)
On that grounds. Yeah I think sports day should be optional. I don't think everyone should be forced to watch the ritual humiliation of the non sporty, when we can develop those who are sporty through area / district sports. This was optional and parents got to go and watch. Much better as children were competing for their school, so everyone cheered on the other children from their school. Those who went, had kudos especially when they came back with medals. So the sporty kids had real opportunity to genuinely feel good.
One of my children was sporty and competitive and would go most years. The other was not and had a nice day back at school.
So much better imho - optional, but also real achievement and celebration for the sporty. Covered a range of sports too, so not just your traditional sports. Which all too often isolates girls.
OP in your scenario- let your daughter have the day off school. My mum always let me be sick on sports day, and I was so thankful I escaped that humiliation every year. It was bad enough always being the person no one wanted on their team in sports reasons, without having to be humiliated in front of the parents too.