Wow...it never ceases to amaze me the number of judgemental jerks that respond to posts....if you have nothing nice or constructive to say, why respond at all? She didn't ask you if you liked the name Dixie, and I'm sure you're all very proud of your childrens' names even though others think they sound ridiculous (or like they'll sound great as partner names in a law firm - "Peyton, Chandler and Finn, can we help you?").
OP - how about Dixie Marie, or Dixie Elizabeth? Just make sure the initials work with your last name in the event you/she like monogramming (i.e., if your last name starts with an A, then "dAm" as a female style monogram would be a problem
Congrats on DD#2