Married Filing Separately is generally the more costly way to file. You will pay more on separate returns than you would on a joint return for the reasons listed in the Special Rules section of Pub 501 on Page 7. Number 11 in the Special Rules explains that if one spouse itemizes deductions, the other spouse can't take the standard deduction. Since the deductions that your daughter has are less than the standard deduction, she has no deductions if her spouse itemizes the deductions.
There is actually nothing stopping you from filing MFS with itemized deductions. The problem would then shift to your spouse. The IRS rule is written such that if one spouses itemizes, then the other spouse is not eligible for the standard deduction and must itemize or take no deduction. Its not applied the other way around as in, if one spouse takes the standard, then you must also take the standard. This means when you itemize, the standard deduction will be taken away from your spouse. So, whether that is something you want to do is your decision, but, in the end, you both must have the same deduction. There is no way around that rule.
The options are to file MFJ, MFS with both taking the standard deduction, or MFS with one spouse itemizing and the other with no deductions.
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