1. It really doesn't matter what the "mindset" was when the goals were created. It she is not making sufficient progress on them, something needs to change. Period. And that change can certainly be modifications or change in placement.
3. Try to reason with the team that at some point they are going to have to teach her time, money, etc. skills, as part of the transition process to post-secondary life, so why not start now? It's ridiculous that they can't "go back" and teach skills that were never acquired. If I child with dyslexia never learned how to read and is in 6th grade, the school would have to go back to teach 1st grade skills such as phonological awareness and phonics. (I would definitely ask your state department of education about this statement.) Also, modifying the curriculum does not equal "move out of gen ed." Should she have a lot of pull out minutes? Yes, absolutely. But she can still have access to gen ed students by way of lunch, recess, specials, , classroom parties, etc. You can't use "social needs" as an excuse not to provide FAPE. This school just doesn't want to deal with her.
Another thing to keep in mind that I forgot to mention in my first reply. As soon as it is available, move her to a "life skills" math class (which may just mean having all math minutes in the spec ed room and none in gen ed). She will never be able to keep up with grade level math - nor does she need to; all she needs are "life skills," which honestly are all most people ever need in terms of math. Don't let her sit in a class in which she is not comprehending. It's SUCH a waste of time. She could be learning things like money value and time, which ARE worth spending time on.