I think the first thing I would concentrate on would be your daughters dress. That is the most important thing of all, its her day and she should look fantastic. Since she really wants you to make it, that is where I would start.
There have been so many good ideas as far as the bridesmaids and flower girl, I really do not have anything else to offer on that note. There is no reason you need to make ALL of them. Back in the day when I was a bridesmaid I had to pay for my own dress. Not sure if times have changed that has been many moons ago. And I think they could find some very nice ones that they could use another time, so it would not be a waste of money for them.
Good luck and keep us posted !!
Also if she really wants the bridesmaids dresses hand made, heck I am a really good at the sewing machine, I have made several bridesmaid dresses and even a wedding dress. I would be more than glad to help you. You would have to send the pattern and material though... : )