In my experience, the people who subscribe to type 1 are afraid that a potential Mozart or Beethoven won't reach their full potential because of bad habits and bad instruction. And the people who subscribe to type 2 are afraid that some kid won't have the pleasure of making music because they can't even start making music for years under strict type 1 tutelage.

There are many more people who never make music because it wasn't fun when they tried than potential Mozarts and Beethovens.