I tried waking my son up during the night, it only made him cranky during the day and he still didn't stay dry.. Some kids just sleep too hard and wet in their sleep. I tried underwear for a few nights in a row and peeing didn't wake him up and I had sheets to wash daily until I resorted back to the pullup. The only thing that got my son him WANTING to wear underwear to bed like his daddy.. I told him if he stayed dry for three nights in a row, he could wear underwear to bed.. It is kinda weird becuase I think once he made up his mind to stay dry it worked.. I remember making a decision the same when I was three and a half.. I wanted to sleep by my sister, and back then we couldn't afford pullups.. she told me if I stayed dry for three nights I could sleep by her, it worked. I don't think kids intentionally make the decision to pee the bed or anything at that age, cause they would love to make people proud of them.. but I think they can psychologically make the decision when their body is ready.. My dad beating me over it, and threatening to make me wear diapers didn't work, but my sister telling me something positive that was really important to my three year old mind did.. go figure!
Some bribery works with little kids, but not all the time. Whatever you decide to do is not wrong! We are all learning to parent as we go, and soon you will find out what works!! Hopefully soon her bladder will be big enough to make it through the night!