We have discussed it a lot. And she is firmly in her stance of abstinence now. I'm just curious if anyone else has been in a similar situation and could offer advice. I know i won't find any real answers here, but it feels good to talk about to to strangers with little to no bias in the situation.
If you are otherwise happy with each other and having fun together, it's probably worth it to try abstinence for a while and see how it suits your relationship (give it about a year?). Keep making out. Chances are you will get to do everything BUT the vaginal or anal stuff lol. My guess is given her character, her mind WILL change about it.
The concerning thing is that she sounds a bit gullible and is prone to making lifechanging decisions based on whim or her own impressionability (will probably have major midlife crises) that you will have to help her solve.
When I began dating my husband, I made it clear I wasn't having sex until marriage, even though I wasn't religious at all and neitehr is he. It was just a "thing" I decided on (autism? repression? flirting with asexuality? who knows!). He acquiesed, thinking that maybe I'd change my mind. I didn't. IT WAS 10 YEARS OF DATING LIKE THAT (well, maybe one of those years was official engagement). lol It was not a dealbreaker for him, which is nothing short of amazing given he has pretty high libido. Worked out in the end because we've been married more than 6 years now. My libido is low, so we don't have sex that often, but it's otherwise a happy marriage.
So this is really up to you to figure out how to balance out your needs and wants in the relationship. Again, I'd say to try it out to see where the needle is on that and if it's truly a dealbreaker for you. As for her part, I'd try to talk to her about "why" such rules are in place religiously. Engage with her about the religious aspect, like telling her you figure a caring God made these rules because many people don't have a good idea about how devotion, honesty, and communication works, so they need simple rules like that to follow to ensure fidelity and lower the risk of disappointment and jealousy. People who risk those things often end up in anger, resentment, making extremely risky decisions, and hurting each other deeply, which is the "real sin", as the religion (supposedly) is about love.
If your relationship already shows good devotion, fideility, honesty, communication, then you are ahead of pack and the rules are not so much rules but "helpful guidelines", and that sex is the reward/enjoyment you get to experience for being able to show that kind of devotion or fidelity to one another.