It sounds as if your daughter is actually into the Emo/Punk look (less chains, cleaner, more stylized, with more colour).
-Try cutting off the sleeves of an old thread bare T- shirt to use as legwarmers (make sure there are no finished edges)
-The arm warmer look was origanly acheived by cutting a thumb hole in long shirts, cutting up a pair of tights, or using wide grained ribbon wrapped around the hand and arm and tied.
-T-shirts can be modified in many ways- start by cutting out the neckband and replacing it with bias tape this allows for the proper look while still meeting many school dress codes. The shirt can now be laced up the back for a Corset effect, providing some of the modern fit requirements. The shirt may also be slit up the side, cut down and laced together.
-Simplicity has a lovely corset-style design that has directions for making it out of fusible webbing and magazines- would be extremely cool in the scene, and helps your daughter learn some valuable skills (ironing, sewing, scounging, following directiond)
-For jewelry, wire or ribbon wrap objects found in the garage or in old computer graveyards
Fashions are reborn by changing the lines on things. This wave of 80's retro has a dropped waistline (even the pants), solid blocks of colour, small flat shoes, the shirts that are worn full have a peasent tunic neckline and a dropped gathered waist, really more Chanel circa 1927 than Madonna 1986. The hair and make-up are very Mod/ Audry Hepburn in the 60's. Have your daughter look at these era's in fashion, and why the fashions came about, and she should be able to predict what the next subtle change will be- being ahead of the curve can make things cheaper, and allow for making a profit when you are sick of your old clothes and want to sell them.