Kimbaz, chelsea is only young, i think its much better for her to be with your friend if thats an option. There is plenty of time for day care and kinder when she is older. Be greatful you have a great friend that can look after her for you, plenty of people don't have that choice. I think its the best place for chelsea atm!
ITA.
I feel fine leaving my 2 year old in a centre if it came to that (she is in family daycare at the moment which is my first preference for care) but I am not comfortable leaving my 5 month old in one.
I think the little bubs tend to get put in a corner and forgotten about a bit. I would much rather leave him with a trusted friend at that age. Plenty of time for daycare and socialisation when she's a bit older.