My dd had one until she was 3...a normal age, really. She stopped nursing around 7mos and the pacifier was her other comfort. Kids (toddlers) this age really need some sort of portable comfort that they can use to soothe themselves. Sucking is a normal, natural urge that needs to be "pacified." I understand your fears completely and there were times I thought we'd be sending our dd to college with her pacifier, but, just as your pedi mentioned, she quit cold-turkey when she was ready. At about age 2 1/2, we limited it to naps and bed time (or car only). After she adjusted to that, my hubby had a great idea (that may have come from my MIL, teehee), about the "Binky Fairy." We told her that if she went around the house AND the car and gathered up ALL her binkies and put them on the fireplace that the binky fairy would bring her a surprise. Little did she know that, waiting in the backyard for her (she was 3 at this time) was a trampoline that my husband had set up for this very occasion about 3 days before (it was winter, so easy to hide)and it was just waiting there for the right moment. After she threw her beloved binkies at the fireplace, we told her we should go wait in her room for a few minutes so as not to scare the binky fairy away....she and my husband did so, and i grabbed the binkies and hid them on my way to her room....we waited a couple minutes and then told her it was time to see if the binky fairy had come. She was so excited when she saw that her BELOVED binkies had VANISHED fromt he fireplace (i know....fireplace...real origional, huh?) and so she started looking around the house for her surprise....then we told her that maybe we should look outside! We jumped and bounced into the night! She loved it and NEVER asked for a binky (pacifier) again! Not even to sleep with.
Your dd is using her pacifier as a constant, steady, unchanging comfort at a time in her development where she understands that other things can change (good and bad). Staying with grandparents, going in the car, babysitters (even if only every once in a while), a bad dream, a scary dog on a walk, etc. Your dd isn't old enough for the binky fair, of course, but she will be...
I know this isn't really what you wanted to hear and you can take it or leave (no hurt feelings here! we all have to choose our own style of parenting!) but she may just not be ready to give it up. If it comforts her and it is not hurting anything, why take it from her? Especially when teething?
It's a tough decision, mama, but I think you'll know what to do...just sleep on it for a while....she's 20mos....not 20yrs...you have time to figure it all out!
Best wishes! Keep us posted!
A.