The only problem I have with the daughter’s decision is her signing that contract which allows the site owner to use her photos for whatever purpose. That sounds a little manipulative and dangerous. Other than that, if this were my child, I wouldn’t make a fuss if she were posing nude. I’d be more offended if my kid became a CEO. 
As far as I know, that is a standard contract. It’s pretty typical that the “owner” of the pictures gets to use them however they please. Personally, I don’t understand why the subject can’t be the “owner” of the pictures, or at least part-owner, seeing as if they were never born, or if they don’t sign the contract, the “artist” would have nothing to make “art” from, but that’s just my perspective.
As far as being a parent and having this happen to YOUR child, you may find that your perspective changes. It has with me. But, I would still support them in their decision. In the end, all you can do is teach them right, let them form their own opinions, and hope they make decisions that make them happy.