First, congrats to your daughter. As someone who works in the industry I have heard a lot of great things about Pitt in recent years.
As to the question of scholarship money, and why Pitt seems able to give more, it's likely tied to the fact that Pitt's endowment is $4.2 billion for a total enrollment if about 19,000, and Penn State's is $3 billion for 40,000.
Though my wife and I both went to Penn State, and though my kids have already expressed an interest in following in our footsteps, I have been working in higher ed long enough to know that the perfect fit may not be the school you always thought was a perfect fit. I plan to explore all options with my kids, find out who is offering the most in terms of scholarship/aid, and make the decision based on what makes the most sense. If that means Penn State, great. But if not, that's fine too.
One thing we are starting to see in our town here in suburban Philly is more and more kids looking to the big state schools in the South. Kids are going to 'Bama, Clemson, South Carolina, etc., and from what we're hearing, the financial aid packages being offered are much more generous than those being offered by schools in the Northeast.