I think running a dwarf car would be a blast. Someone has been running a can-am (three wheeled reversed trike thing aka a "land-doo") as TO. And if anyone has been to a board meeting in the last year they'd know that the SCTA is trying to boost participation so instead of saying "why?" why not say "sure, why not?"?
That car as pictured would run TO. It doesn't meet the minimum wheel base requirements to run as a lakester. If you covered two of the wheels for aero purposes it could be run as a streamliner but why'd you'd do that I dunno (maybe if you want to run for points??). If you're looking to make passes down the course and have fun and don't really care about having a class to run in or setting records then by all means run TO. You'll get a speed limit based on chassis construction, safety equipment, tires, etc.