So, I'm answering my own question as a number of things happened that sort-of solved the problem for me, I stumbled on some great resources and wound up combining the answers that were given here too (both from answers and comments really).
First, I agree with Beofett even down to preferring the Signet Classics over many of the other options we encountered - even the "No Fear" translations that make it possible to read it in a "modern interpretation" are not all that helpful because a lot of the nuance gets lost and it is too tempting for her to just read the "modern take." The Folger versions are also very good - but include a little too much.
Touch of Greatness was a wonderful film about a man that was clearly a spectacular and inspiring teacher - I do recommend it. However, Alice found it a bit boring and "old fashioned" so I didn't make her watch it. The main point of the movie within the context of what I was looking for though, was that actually acting out the parts makes all the difference in the world for kids and that they really can understand Shakespeare in a very deep way.
The best resource I found to help guide us was How to Teach Your Children Shakespeare which goes over a few of the plays in detail and breaks down a few key scenes as well as contains biographical information. The online resources have printable quotes pages that are designed to help with visualization of lines the kids will memorize (that are explained in depth within the book) and audio clips of professionals reading the lines with proper pausing and pronunciation as well as nice emphasis and emotion. Like Beofett, the book starts kids off with a Midsummer Night's Dream.
There are quiet a surprising number of "kid's versions" of even the darker plays like Macbeth, both in books and other media. We enjoyed Jim Weiss' tellings of Romeo and Juliet, Midsummer Night's Dream and Taming of the Shrew.
Another actor in the play with us is a Literary professor and suggested to really focus (from an "appreciate the writing" standpoint on finding the antitheses in whatever we are reading. The suggestion was that it would push vocabulary while also setting Alice up for a good understanding in symbolic/metaphorical language. We did this and also analyzed the prologue to Romeo and Juliet considering it one large antithesis. Since the prologue is a sonnet (generally considered a poem for expressing love) it is interesting that there are some twenty words in it like mutiny, enmity, brawl (or other words that demonstrate actions that stem from hate or are violent) "Where civil blood makes civil hands unclean."
Chrys' image made me think to look up modern tales inspired by Shakespeare as well as music that references Shakespeare. When I pointed out that the song in Harry Potter and the Prisoner of Azkaban the toad and kid's choir sings at the beginning had lyrics from Macbeth, Alice was stoked. We had no trouble finding all kinds of things that reference Romeo and Juliet. Then, since Valentine's Day was part of the time span that passed between posting the question and now, her teacher had the kids play the "Great Couples" game where you have to figure out who you are (based on a card on your forehead, or taped to your back) and then find your proper match - coincidentally she was Juliet - which we got a good laugh out of.
We wound up actually acting in Romeo and Juliet, so my daughter learned a lot about that play in particular. She had a line (as potpan, the serving person) and a couple of other unspoken parts, but in the process can now say the lines of Lord Capulet when he is angry and Juliet, the lines of both Romeo and Juliet for the first half of the balcony scene and the love sonnet from when they first meet, as well as a few other bits here and there - It wound up being a truly wonderful experience for her and the woman that played the Nurse is director of the local Shakespeare repertory theater and invited her to join. Alice will actually be acting as one of the witches in Macbeth in a single scene rendition for a festival coming up and is in charge of presenting a two minute biographical speech on Shakespeare himself. Now, my biggest problem will be in avoiding over-exposure as Chrys warned against.
Anyway, I appreciate all the postings and the help they offered so thanks to all of you, our studies have been rewarding so far and I am sure will continue to be.