I will just add that while the top has become "lacy" and is involuting wonderfully, the bottom is still quite red, though flattened and lighter in tone than before. It hasn't started to "break up" yet.
We have been advised that it should go away on its own by the time our daughter is about 5, however, I am not sure if the redness on the bottom will entirely go away. Time will tell. As a more grown-up young girl, if she would like, we will support her in getting whatever treatment she would like.