Welcome from Indiana!
It is definitely true that rabbits have never been classified as an agricultural class of animal. This
allows a loop hole for most locations not allowing agricultural animals to be raised.
My wife was not raised on a farm, but her dad hunts and fishes. When we were still engaged or newly weds I went out behind her mom and dad's and hunted some squirrels she ended up sitting to eat with me. As I cleaned them, she said it seemed like quite a waste considering the size of the carcass. I told her that was why I had shot 4 of them. Some guys occasionally brought a deer to me to process. So, she wasn't squeamish, but did have the "cute bunny" syndrome.
She knew I had raised them with my family as a kid, so she didn't question my abilities. My boys were 2 and 5 when I started back up. The 2 yr old was only eating eating chicken nuggets at the time, so occasionally I would take the back straps and turn it into nuggets so he would eat them. He knows there are rabbits out in the shed, and he "knows" we eat them. At least he hears us discuss it.
My 5 yr old was all into all aspects of the production. He likes to help feed, plays with the babies, pets the adults, and has asked to watch the dispatching of the fryers. I still have not let him see that part yet. I also told him we do not name the babies, and as often as the ones he has seen raised are processed, there will be new litters to replace them to play with. He is ok with that.
Both my wife and older son ate with me the very first time and liked the meat to their surprise. I am a pretty good cook and taught my wife how to cook, but she would cook the meat if I wasn't so picky. She does not want to think about the phase between running around on foot and in the freezer. I bring then into the kitchen ready to be aged in the fridge for 24 hours and quartered cut up. We have almost eliminated buying pork and chicken at the store, and we know no steroids or antibiotics or anything else that could be introduced to commercial herds.
I am not familiar with raising daughters, but you might let her know how healthy the meat is. It is very low in fat or cholesterol content, and high in protein. If she is willing to try it, she will not need to fear weight gain (depending on cooking method). There are several cooking methods that are lean as well. Any way one can cook chicken, can substitute in rabbit. The good smells coming from the kitchen might help in creating an appetite for rabbit. Imagine a slightly sweet chicken that is coarser like pork. This could also bring hubbie around the very first time the effort has paid off with a good meal and less grocery bills.
It is a mind over matter thing. They look a little less cute when one has to clean up after the rabbits and dispose of the waste in whatever manner is chosen. Some chores to feed and clean after them will probably help some reality set in without being harsh. Many kids have grown up knowing the livestock is meat without being involved in butchering time. Witnessing the humane method of dispatching and then helping in processing can teach some good lessons in appreciating where food comes from and not to waste something that has value.
I had a friend living on 40 acres that used to be a farm (for generations in the family) and when he went to apply fr a build permit for a barn they flagged him and said he was no longer zoned that way. He was able to go to city council meetings to request to be rezoned. They did. But they can also grant you an allotted number of animals per your property that you cannot exceed as well which may be an option. I would check about maybe trying one of those options.