Lydiard DID condone racing during the base phase for runners who want to be the best they can be as long as the races did not interfere with the training base. If he hadn't they wouldn't have done it. All of his guys were loyal members of their running clubs and as such would have been expected to turn out for "club races" year round and they did. Ron Daws, who was as much a Lydiard guy as Lydiard himself says in "Self Made Olympian" that the schedule (and he means the classic Lydiard one) allows for year round racing in "fun" events.
For some people, as the sport changed, fulfilling themselves and getting enjoyment meant regularly winning or placing well in races throughout the year and not just for 3-4 week stretches half a year apart. John Davies was as pure a Lydiard guy as Daws was and used Arthur's principals when he coached Anne Audain and Jon Sinclair but adapted the principals to allow for year round racing because that was primarily what these runners needed to do. Clohessey did the same when he developed his system. All these adaptions were very successful though none, if you're counting championship games placings, as successful as Arthur's original approach, again, which did not forbid casual racing.
In this thread, the OP is asking if there are ways to use Arthur's ideas that will allow a young runner to race frequently and there are. You are correct when you say that Arthur's answer to such a question might be to try talking the OP out of racing frequently and that's a good thing to present here. But very few young runners would be interested in using Holmer's idea of training but not racing for two years.