This is so heartbreaking! Your daughter sounds terrified, not only of the daunting journey in front of her, but the prospect of failure.
The kids love her probably for the same reason you do, they've seen the person behind the disease. Somehow, someone did something right with the kids that their compassionate enough to be able to separate the two, at least on some level.
I can't even imagine the heartache you must be going through as her mother, watching her go through this. I do hope you're doing what you can to take care of yourself through all this. Yeah, I know, easier said than done, but still necessary. :)