It sounds to me as though this coach doesn't appreciate how good he/she's got it. Your DD is a good hitter/fielder/thrower who is being respectful and yet she's STILL being punished because she's a bit "resistant." What the heck?
From what I've read here, I'd love to be a fly on the wall when this coach meets a girl who really does have a diva attitude and tells him what he can do with his suggestions.
If you go back to the original post by Cyclone, there has to be more to the story than what has been shared here. If you read between the lines, there is some underlying reason why this TB player among rec players is not allowed to play varsity. Since it's pretty likely its NOT her level of play that is the issue, there has to be more going on than just her being a little bit resistant to change.
The bottom-line is this coach (no matter how incompetent) is the one that holds all of the softball decision making power, so if playing varsity is the end goal, I would instruct my DD to be a team player and at least "pretend" to listen to this coach. Once you are labeled a difficult player its hard to get rid of that label. I hope it all works out.