Don't worry, YANBU !!!!!
I completely understand how you feel about it all - and I have a 13 week old Springer Pup, am a very doggy person, have had several Springers and I have a daughter.
Being a responsible dog owner is also considering others when they are around your dog, ESPECIALLY children.
There have been so many cases of terrible injuries and fatalities concerning children and dog attacks you just cannot take any chances. NO dog is completely trustworthy and I don't care what anyone say's.
It does appear that your friend did maybe use your daughter as 'practice'. And, I am horrified that she let the dogs roam about in close proximity to her newborn baby. The fact that the baby came after the dogs is also a factor. We have waited until dd is 4.7 until we got another dog. In my opinion, and it is purely personal (before I get shot down), that babies and dogs are not a good combination.
I wouldn't allow a dog to lick my dd's face either, just think where their noses and mouths have been ! The hair/ smell is all part and parcel of dog ownership I'm afraid although there is no excuse for the the house being very stinky unless one of the dogs has a smelly health issue like smelly ears or anal gland problems .
Explain to your friend that you are happy to visit but that your dd is wary of the dogs and would she mind gating them off whilst you are there. If she refuses, don't visit. The choice is hers.
My in-laws refused to shut their dog away when dd was a baby/ toddler, even after he'd shown signs of aggression and intolerance to her. We refused to visit. A childs welfare and safety is paramount and the fact that your dd was scared of the dogs would be reason enough to gate the dogs off - especially of them !