she felt torn because she wanted our daughter to participate in sports but she knew she was 'going against God.'
This is the key point you and your wife are learning about JW's. The pressure to conform, even on matters of conscience.
As my good friend Yknot shared with you the 'key JW reasons' to consider, did you notice the last sentence.
"Answering these questions will help you to keep your priorties in order" It is implied rather strongly, what a 'good JW' should do. As you and your wife have already learned, there is similar pressure to conform in other areas in matters of conscience.
Not conforming correctly will cause your family to be judged adversely, as your wife mentioned in her concern earlier.
Making rules like, "good JW's should not play in sports" then enforcing them by peer pressure, is not the real Christian way of non-judgemental love taught in the Bible.
There is value taught in team sports, they are not evil. Some of my coaches were very good teachers. Its been many years since I was in school, and I still have good memories of lessons learned.
And briefly, my experience. I was active in sports in high school when I began to study with the Witnesses. I was strongly encouraged that if I wanted to progress in the Witness work, sports would hinder my progress, and possibly, could lead to me losing God's favor.
I was being recruited by the University of Hawaii at the time. Coming from a very poor family, a college scholarship would have been very nice to have. A person would be 'nuts' to turn that down, no? Many examples were shown to me in the Awake of professional atheletes quiting their careers for the work. I quit the team and gave up my chance of college. True, it was my choice, but I can't tell you the amount of pressure that was put on me, to do the right thing.
Which is the point I'm trying to get across with you. You and your wife live with the consequences of your decisions. No one else should pressure you to live your life for you.