CazSoul, I'd say that slowing down to achieve distance without walks is the better option. Once you can do the distance without walking, then you can start upping the pace. If you've only done a 5k race before the smoartcoach will start you off gently. The alternative is to time yourself over 10k & use that as the smartcoach basis, but that's likely to be slower than what you'd do in an actual race anyway.
The other option is to ditch smartcoach & use one of the beginner HM schedules that's on RW - or even use one of the Super Six people's schedules - Dump Truck started as a total beginner with almost no running at all. His would be a good option, his goal was initially just to finish, not any specific time, but the schedule still has him training at good speeds.
I still think the goal is to be able to increase your running mileage, although there's nothing wrong with scheduling the odd walk break, the point of the LSR pace is to get you able to manage the mileage without putting too much strain on your body. You'll soon feel the benefit of it & will possibly find that once you can do the distance without walking, you start to increase pace slightly anyway, back towards the 11.07.
Does that help?