Then yes you may want to consider having his rights stripped.
But you need to be realistic, keeping the child will mean that your DD will have a constent reminder. Molestation is tough to deal with and even tougher when a child is involved. It is not easy to keep a child from that type of situation. The baby years are probably the easiest, once the child starts to take on their own personality it get tougher. Genetics are strong and some traits will be just like his father's reguardless of up bringing. I would strongly urge you to ensure she has a long time support group.