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I would gladly let the SL16 race, but would it be fun for the SL16 crew?

I think it would be a lot more fun than not racing at all. And that is pretty much the only other option except Portsmouth.
As Wouter said, these kids need practice for starting, mark roundings, and tactics. They won't get it in Portsmouth racing. And, of course, they can't race in Hobie regattas. The only class they really can fit into at all is the F16.
It is not a matter of whether they can win; it is a matter of PRACTICE for them.
Geesh! What is the problem?