While I appreciate your candor, and your concern for your daughter, you have made the right decision - if you had made any other things would get so much worse.
Look at it this way... your daughter cares about and respects you enough to ask, if you try and force her to "obey" just because she lives at home .. you could end up losing her very easily.
My daughter went to University at 18, from which point on I had no control over what she did and HAD to trust her. Now 22, she now lives back at home and has total freedom, however she knows and respects the "house rules".
I know from my own childhood all about rebellion ... my father was extremely strict, sometimes just to prove he was "in charge" - I rebelled and left home - my choice - it took many years before we reconciled our differences and he learned to respect me, having always demanded I respect him.. regardless.
Please don't risk alienating your daughter - the short term "win" could end up a very long term "loss" - trust her just as she trusts you.