Hi I am in NZ and have two blind sheep. One -also called Alice is 6 years old and is the fattest healthiest sheep ever! She has lived with her mates (all pets) for her life since she was found blinded by pink eye as a four- six week old lamb on a friends farm. She wouldnt feed from the bottle and was very dehydrated, but came right with lamb meal, grass and possibly a bit of water from the bottle. I talk to her constantly when with her, and she became tame and reliant on myself and the other pet sheep very quickly. She calls if she is lost or worried, and listens intently to everything that goes on. I keep her only in safe paddocks, you have to make sure there are no sharp things (such as wire ends on the fence sticking out) holes in the ground and ponds or rivers. She is incredible and knows her way around her paddock and a couple small ones that she and her friend are rotated into. I put her in the same one each night with a good shelter, and she finds her way in. I have also just got a 4 month old lamb with her sighted mother who was born blind, the three of them now are living together) the weather is terrible here and I am keeping her in the shed with supplements and a pile of grass so she does not chill (she has a cover on) until she knows her way around properly and has put more weight on. Just before i got her, she was bumped by some bigger lambs (she is small) and hurt her back making her back legs limp at different times. With med from the vet this is coming right after three weeks. I am wondering with her if she has a skin over one of her eyes, which i will get the vet to look at once she is stronger. The other is folded and blind. Check that your lamb does not have pink eye, as i have had totally blind lambs with this (sore and red and weeping)which were totally blind, who with ointment from the vet can now see. One is still blind in one eye as it had ruptured but it has healed.
So YES blind lambs become strong and healthy and love their lives too, the sun and warmth, being patted and hanging out with their paddock mates. You sound like your setup is great, I think she will be fine. Try to find out though what has caused it, if she has a infection or it is just how she is. Blind eyes are milky normally. Lead her around the paddock as she grows and watch that the other lambs ae gentle with her. Sheep pellets shaken in a bucket are a good lead.
I dont breed any lambs, and would suggest probably avoid breeding from her, as there will be enough stress in her life with shearing , vaccinations etc . Though Fleecewife your Alice sounds like she got it sorted with her lamb! Good luck!