You have received lots of information regarding to shave or not to shave. My question would be more regarding character. What are you teaching your daughter when you teach her to conform to the whims of others because they are teasing her? What are you teaching her about her own self value and worth when you teach her to alter how she is made naturally and at such a young age? What happens when her nose, lips, eyes, breasts, thighs, etc aren't what the general population expect them to be. What happens when she is older and teased about other body image things, such as her height, weight, figure, hair, face, etc? What tools or skills will she have at that point for dealing with the same type of adversities?
Is she being teased by neighborhood children or school children? What things have you done to address this with the company she has been keeping? Would it be possible to change the company she keeps? Who are her friends? Does she have a strong friend base, those who will stand up for her and protect her from the teasing? What adult figures have you spoken to about this teasing situation?
Before I made a decision regarding removal of the hair I would at least help her in matters of character and problem solving. If she can master these lessons at 7, the sky is the limits for her and she could be of great help to someone else when she is in her preteens, teens and beyond.
Please just give this some thought.
K. - guardian to six girls ages 5 - 20.