Not sure that a ship that blows up its first time in combat can really be called "advanced".

But sure, why not. It gives Britain two battleship models still left to research, rather than just the one.
Coast defence battleships are mostly classed as armoured cruisers in the current OOBs.
As a rough layout, how does this sound?
Level 1 (1890)
Old Cruiser
Torpedo Boat Destroyer
Level 2 (1900)
Pre-Dreadnought
Level 3 (1905)
Armoured Cruiser
Basic Destroyer
Level 4 (1908)
Dreadnought
Battlecruiser
Level 5 (1911)
Superdreadnought
Light Cruiser
Improved Destroyer
Level 6 (1914)
Improved Battlecruiser
Seaplane Carrier
Level 7 (1916)
Battleship
Improved Cruiser
Level 8 (1918)
Advanced Battlecruiser
Aircraft Carrier
Advanced Destroyer
Level 9 (1920)
Advanced Battleship
Advanced Cruiser
Level 10 (1922)
Modern Battleship
Modern Cruiser
Modern Destroyer
Improved Aircraft Carrier
(Alternatively, you could split level 10 into 10 and 11, and divide the 4 models between the two).
It might be objected that Britain will have already reached level 7 and the other major naval powers level 6 at the start of the mod, leaving not much to research. The problem is that the great period of naval development was 1905-15, and not much new or interesting was done then until the late 1920s/early 30s...