In general, high school volleyball has significantly diminished in importance because of the growth and professionalism of club volleyball. Club volleyball is a 6 to 8 month situation, and with the rise of club camps and summer trainings/lessons, it is easily becoming 10 months of participation. For many players in the larger cities, taking the high school season off has become a viable option because of the opportunity to rest their body during the fall months, without any fall off of skills.
For recruiting, college coaches are focused on club. We may say we are concerned about high school but we really are not; we just say that so we don't upset the high school volleyball coach of our recruit.
I have not had any home schooled players, but it would not concern me if I did - As long as she is academically eligible, is my only consideration. The volleyball development part will be handled by club, and it sounds as if you have found a good club situation to develop her volleyball abilities.
As you move forward in the process, be aware that setters tend to operate on a slower recruiting time table because of the nature of college volleyball recruiting. Outside Hitters, then Middle Blockers, then Setters and then Liberos tend to be the nature of things.
Because your daughter is just 5'8" with average athleticism, and new to club volleyball, my guess is committing late in her Junior year or most likely as a senior is her timetable (which is a good thing considering all the craziness in today's collegiate athletics and volleyball).
Best thing you can do is continue to support her healthy skill development, while you educate yourself about the recruiting process and rules. To this end, I would strongly suggest you take a look at NCSA Athletic Recruiting and at least get on their Free Site which is amazing!!
In closing, enjoy the fact that you don't have to operate under the hurried recruiting tempo of the attackers. Savor the bonus of watching your baby girl play elite level volleyball, without dealing with us crazy college coaches. The stress will arrive soon enough, and I promise you that you will wish for her freshman and sophomore year back!