I would definately do it. It sounds like she needs for it to be shorter just for hygeinic reasons if not so she doesn't wreak it even more. Maybe when she's older she can have it longer but if she won't let you help her with it, make it managable for her now. I just cut my DD's hair shorter to her shoulders, while she's only 3, it is so much more managable for me to comb and wash and put up for her.
Personally I love MaryDeans post. I did a similar thing to my sister Keisha (who is 6) when I had her for a whole school holidays. If she couldnt manage super long hair we got it cut to a point where she could cz she refused (read screamed the house down if I touched it) to let me help her. Worked out much better for everyone
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