I don't think the situation is necessarily as black or white as it seems. In my experience convincing someone to adopt a cruelty-free lifestyle is far less about saying 'go vegan' as it is educating that person about the cruel reality of animal industries. Most people don't make ethically conscious decisions because they are uninformed how to. And most people don't like to be preached at, but deep down they do want to be informed.
One of the tactics Animals Australia uses is informing the public through lobbying action. This tactic not only exposes cruelty issues to masses of individuals, but also uses this same momentum to put pressure on government and industry wherever possible. For example, earlier this year they alerted their online supporters to the epic failure of the dairy industry to consider the welfare of bobby calves in the review of the 'Land Transport of Livestock Standards and Guidelines'. Among other atrocities the reviewed standards basically allowed dairy calves destined for slaughter (read: waste product) to starve...
The pressure that the alert was able to put on the government at the time forced a review of the review and embarrassed those responsible for signing off on the standards when they realised that they couldn't push any old regulations through thinking that the community wasn't watching. Whilst this doesn't mean that it's OK to kill 1 million bobby calves every year, it does mean that they might not suffer AS MUCH before their premature deaths. It also means that countless thousands of people are now aware of the callousness of the dairy industry and their disgraceful 'waste product' -- and are therefore less likely to consume cows' milk. The effects of this action were clearly 2-fold, and I believe it had the opposite effect of 'entrenching' bobby calves in a system of suffering; on the contrary -- it showed the decision makers that despite the system that exists today, they cannot do 'whatever they want' with the lives of animals.
Countless people I've met have remarked that it was this one e-mail alert that was the catalyst to them becoming vegan

Of course, it won't work like that for everybody, but employing tactics like these leaves the door firmly open to those others without alienating them, so that over time they can become more informed and be in a better position to make ethically conscious choices.
PETA uses similar tactics in the U.S. whereby they will mount a campaign against a fast food giant (for example), to implement humane slaughter standards. This campaign vehicle allows them to inform individuals of the horrific abuse animals suffer in the meat industries whilst also putting pressure on industry to reduce suffering RIGHT NOW. If you've been involved in street leafleting for campaigns like these you'll know that the impact on the ground means more informed citizens, and as a result, more vegetarians. On top of that, when this campaign was waged against KFC Canada, KFC not only implemented more humane handling and slaughter methods -- reducing immense suffering right now -- they also added a faux chicken item to their menus which helped to make veg food more mainstream!
I don't think the power of these types of institutional changes to reduce suffering should be downplayed, and I've never seen any evidence to suggest that they deter informed people from making ethically responsible decisions in their own lives.
I don't believe these types of tactics fit any one definition that I understand 'welfarist' or even 'new welfarist' to be, as I think these labels attempt to make what are multi-faceted and strategic approaches to reducing suffering and advocating cruelty-free lifestyles overly simplistic.
At the end of the day I don't think we will be able to end all animal abuse with just one method. I believe it's fortunate that we have countless groups and countless people using countless tactics to create a kinder future. I also believe that fuelling arguments between people with different tactics is in ITSELF a destructive 'divide and conquer' mechanism at work. There are so few of us working to help animals that we can't afford to let that happen!!