I too believe that any form of CIO can have long lasting impacts on children and am opposed to it. I am a long term boobie-feeding mom. I currently have a 20 month old and a 9.5 year old. Here is what I suggest:
Make sure she she is really ready for bed. My son sleeps till 7:30am, But doesn't go down till 9pm (he takes 1 nap at 1pm for 1.5 hrs). He nurses and gets sleepy and then I put him in his crib and he falls asleep. His crib is in our bedroom, pushed against our bed with the side off. He usually will sleep in the crib till about 1 or 2 am, wake up for a quick "bit-o-boob" and then conk back out. Sometimes I will put him back in his crib, other times he stays with us. He nurses one more time at about 6am, then sleeps till about 7:30am. I nurse him to sleep for naps, though sometimes he nods off for a nap in the car or when I am wearing him. They feel secure and safe and those feelings allow them to nod off.
I used this same sleeping arrangement with my daughter and she is an awesome sleeper - confident and at the other end of the house. She moved into her room when she was sleeping through the night and weaned. We would lay down with her in her room and she would fall asleep. She would stay there half the night and climb in with us around 2am. Eventually, she stopped coming in with us, but there was never any tears or trauma.
All children will eventually sleep on their own - when they are confident and ready. I have found that the breast fed babies tend to transition to their own rooms when they finally wean themselves (my daughter nursed till 3.5 years).
I think you are doing awesome! She will learn and want to sleep on her own when she is ready. Remember that she is still just a baby. Humans are considered infants in the animal world until 8 years old! We forget that all the time.
Best Wishes! :)