[Honorah]

I personally use the parental controls for my 13 yr old son and also the profanity filter is available, however in my sons case he knows how to change that option. I know some people may think he's 13 why so restrictive but it works for us and keeps him out of trouble knowning his parents are watching & can check on him. (also his account is under my name & email so any emails from Blizz comes to me)
In my opinion you should have reported this incident, maybe a good warning would be enough to stop and make someone (a child) think (possibly not) before speaking in such a rude way. Please take advantage of all the options Blizz gave to us parents and use them in a way to help your daughter enjoy the game and most of all continue to talk to her about what she does see or hear that is inappropriate and how to handle situations like that.