Much more than just "meds and paperwork". Here's a list of some of the things I do:
Pre-admission screening and admission acceptance, continuing mental health assessment and medical assessment, treatment planning and consultation with the whole mental health team of doctors, nurses, clinicians, social workers, therapists and court staff, coordination and supervision of my staff on shift, adminstration and monitoring of meds, management and treatment of co-existing medical conditions, patient teaching and counseling and family teaching and counseling.
True most of the above involves paperwork and meds but on a much more complex level. I was also interested in pscyh nursing right out of school and was counseled away from it by many peers but I went right into it and am still loving it almost two years later. I've never regretted it. Have your daughter see if she can spend some time in school doing a psych rotation and if it's only a short rotation have her request some extra days to see if it's a good fit. :)