I don't have a daughter so I may think different some day about say, the teen niche. But what I do know is take a look at world morality. Having your own morals and ethics is important, sticking to them for your own self good keeps you sane. However in this world, teen porn for example really isn't the worst thing going on out there. For example, I recently changed to a vegan diet after learning they usually skin cows alive, boil pigs alive. The exploitation of animals by humans is just terrible. I know I sound like some peta freak now, but its just really terrible. Why don't we eat other humans? Why don't we use diseased corpses of our own species for canned pet food? I try not to be a speciesist these days, which is really hard.
But in terms of porn and morality, I've worked enough in the real world industry of it to know its not that bad. And yes, ugliness does go on, but you can't get away from it indefinitely. Keep working on mainstream as a backup which is a good idea as well.
Raise your daughter the way you see fit, and she will love you. And with education and the infusion if intelligence she should know better than to sell her pussy when she comes of age. You can't change the world, but you can breed and contribute something good with patience and understanding.