Hi M.,
What a thoughtful and caring parent and grandma you are! It's good to think through both sides of an issue. Your intuition will lead you to the right decision for your family.
I faced this issue with my daughter. I believe based on experience and research that extended use of a pacifier CAN cause dental issues in SOME children, but very often DOES NOT. The trouble might be in identifying which type of child you have. For example, children on my side of the family suck pacifiers up to age 3 and 4 with absolutely NO dental damage. My husband's family, different story. I believe there is a genetic component, as well as other behaviors which influence dental problems, such as tongue thrusting.
Personally, I am a fan of attachment parenting, based on my personal experience that this type of parenting style simply felt right, not based on what the "books" say, because you can find a book (or pediatrician for that matter) out there to voice just about any opinion imaginable. The conflicting advice is mind boggling and positively exasperating at time.
I personally agree with your opinion that children should be permitted to self soothe. Attachment parenting says that a need that is met, eventually goes away. A need that is unmet shows up later on in a different form. Translation - the parents who summarily snatch the pacifiers away without emphathizing with the child and exploring what that silly need is all about may simply drive the need underground temporarily, only to re-emerge as something else - thumbsucking, nailbiting, hair twirling, sugar, overeating, smoking, drugs, etc. The addictions get more problematic as they get older. Parents may feel victorious in "conquering" the problem by force, but does this actually help the child to grow and learn? Did they REALLY truly "conquer" the problem like they think they did? How can we teach our kids to put down their own addictions??
My daughter had her pacifier until age 4 1/2. I always limited it to naptime and nighttime. She was VERY attached to it. Although this became VERY annoying to us, we believed in allowing her to work out her emotional issues. In her case, it DID begin to affect her teeth. She developed an openbite (teeth don't close in front). She also has a tongue thrust habit, which exacerbates the problem. At age 4, when the orthodontist told me to take the pacifier away that night and sign her up for surgery (ugh!) we decided to try to encourage her to put it down on her own, and take a more conservative route. We spoke to her about her cousins who put it down on their own. We spoke about growing up, and what that meant - doing more fun "big girl" things, and also letting go of some baby habits. We didn't force, just mentioned it now and then in appropriate contexts. She began to mention it more herself, saying maybe I'll stop using my pacifier soon. Then I told her we would have a party to celebrate when she put it down. She was at first NOT intrigued by the party. I let it go, and brought it up a few months later. She began to think about how fun that party might be. Finally, after only a few months following the orthodontists admonitions, SHE decided to put it down. I was inspired to throw her a "Butterfly" theme party, since she was like a butterfly transformed. I told her there was NO GOING BACK! Once she had a party, she couldn't ever have the pacifier again. She threw one away in the garbage, but that night she panicked and cried for her pacifier "one last time". We gave her another that was in the house. She decided the next day she was finished. She put that one in the garbage herself. I think she did this one more time, then she was done. We held the party, with a few friends to celebrate. She was positively elated. She wanted so much to be a big girl and move on. She emphasized to everyone that SHE decided, and nobody decided for her. I didn't realize just how important this was to her until I heard her tell people about it. Everyone congratulated her, she was proud, empowered, and still remembers and speaks of this coming of age transition with fondness. The success of this approach exceeded MY expectations!!!!!!!!!
Then the parents came out of the woodwork, admitting their child still used one at age 4, or they yanked it at age 2 1/2 or 4 and they wonder now if that was the right decision. If SOOO many kids have this habit, maybe it should be viewed with more understanding????????????
It's been about 6 months and her teeth are significantly improved already. She just lost her first tooth, and I plan to take her to a dentist that specializes in tongue thrust issues (since we still have to address that) and help monitor her situation. The dentist I plan to try is www.21stCenturydental.com. I'm hoping her teeth will be fine. My husband's returned to normal after he stopped sucking his thumb at age 5. I believe if you take the pacifier away you may STILL have messed up teeth if you do not address tongue thrust issues. The dentist can help evaluate if your child has a tongue thrust issue.
So there you have our personal account of "gentle" parenting on this issue. A few times after the party, my daughter stated she missed her pacifier. I verbally empathized with her and said I understood those feelings. They were natural feelings. I didn't try to "fix" those feelings or save her from them. She has a right to those feelings of loss. She also continues to relish in all of her "big girl" accomplishments, which include learning to swallow a capsule whole! And she still wants to play "baby", which I do with her whenever she wants. She has not started any other annoying oral fixation habits that I can tell, and seems to be comfortable with the decision SHE made.
Hope this helps! I know you will make the right decision! Good luck!