I’m now thinking a new rear wheel might be the way to go myself, she’s muddled on with the Coaster hub for over a year but it is a bit shit and draggy and she just uses the the front brake 95% of the time…
As for keeping it all “Original spec”, her younger sister will probably inherit so actually having the bike useable when she’e big enough makes sense, and I can always keep the coaster wheel if I ever want to flog it on in the original configuration (although I doubt anyone would want it like that TBH).
A second caliper for the rear might be a good idea, I might have a reasonable one in the spares box actually, while I’m at it I might see if I can find some levers better suited to little hands too.
Actually changing it to take screw on FW might be a good thing anyway as I think a slightly easier gear might suit her better as well, so I could change the gearing at the same time.
That’s it, I’m re-building my daughter’s bike!