OMFG! How did you ferret that out? How did you then stay awake long enough to read through and get to the bit about terraces? I’d have given up after 6 pages of errata and never hit the paydirt. You did a very good job there.
It does indeed. I can see it applying to three situations in Cardigan, one of which breaks those rules as I understand them (it has its own access road) but is addressed using that convention anyway.
I assume that here you’re talking about the NLPG database schema, which seems somewhat complicated. A sort of denormalized normal form in an unrelational database. Who cares about database internals (except people writing code that makes it all work)?
All we have to do is invent something in the addr: namespace. I note that the document mentions this applies to both named terraces (at least 3 in Cardigan) and parades (at least 1 in Cardigan). And you say that it could be conceptualized as a horizontal block of flats. So how about addr:blockname? Maybe (probably?) somebody will come up with a better tag key, but block can apply horizontally as well as vertically. Only problem with blockname is possible confusion in the US, where cities are divided into blocks, referred to by two orthogonal street names. I see from a thesaurus that “block” in that sense came from “a compact mass of buildings.” Most of the synonyms for block (meaning area) have other usages in Merkin. How about addr:demesne? 
It doesn’t matter that current renderers won’t understand it because the map will reflect what I see on the ground: there are two houses numbered 1 on Quay Street (actually three if I count the block with its own access road). Until iD catches up (if it ever does) those of us that need to do it can enter the tag manually. The only other thing necessary would be to amend the wiki accordingly.
I also suspect other countries may have a similar intermediate level in some circumstances, so maybe addr:block needs a better name, depending upon what they use that intermediate level for. It’s also possible some countries may have more than one intermediate level. Do we worry about that now or deal with an immediate need and slap another kluge on the system later if it becomes necessary? I vote for immediate need, simply because these buildings are nagging at me to get mapped.
It seems to me it’s just a matter of agreeing the appropriate tag (whether here or in a formal discussion) then amending the wiki and waiting for editors (and maybe renderers) to catch up.