I grew up on a UK small holding sheep farm (2-400). In the 80s it was possible to raise a small family largely thanks to the benefit system.
As I see it hobby farmers are all we need for sheep production. I agree that we need a degree of livestock but we need to transition to reducing our consumption of meat hugely. Much of the land currently used for livestock should be converted to forest and forest garden communities as soon as possible. There a problem with consumer awareness. If consumers cared about pesticides in their food, or food miles, or dependence on foreign imports (on an island nation) then the locally produced food would be more viable. However most consumers are so heavily hypnotised by modern consumerism there only desire what is persuasively advertised which means sexy new 'phones' and not poison free vegetables. Control of food and water gives certain control of people. Only a small percentage of the population is really aware of what it takes to make enough food to stay alive. Large corporate forces now control policy and effectively the market condition in most respects so small scale passionate farmers are best of not trying to engage with the commodity markets. If the UK leaves the EU and there is a major global conflict people will quickly start to realise the value of local food.
I'm mostly interested in how we can reduce the labour overhead in the this kind of small scale farming. At EMF camp I saw an brilliant example of someone building their own open source horticultural robot. It will be at https://pretix.eu/farmhackwales2018/fhw2018/