Be careful not to make this too complicated. Yes, the regulator restricts the flow, but that's how it regulates the pressure--restricts it more when the flow demand is light, and restricts it less as more flow is needed. The result is a constant pressure at the outlet.
This also illustrates the problem with any type of pressure regulator--they often don't regulate well when the flow is zero. Specifically, imagine that the float valve shuts off, and the pressure rises. Then, the regulator's shutting off the supply won't reduce the pressure; you need some flow to bleed off the fuel between the regulator and float valve. Not usually a problem, but good to know.
Also, remember that you don't need a huge flow. For example, if your car gets 30 MPG and the flow is 10 gal/hour, this supports a speed up to 300 MPH! Now, obviously, the flow demand will be greater in hard acceleration, but even then a modest flow should still suffice.
Finally, you can get Holley regulators that work at low pressure: the 12-804 is spec'ed at 1-4 PSI. That should be fine for a Sprite. I don't have any specs on flow limits, but the fact that it is not specified probably indicates that it's not an issue. They're used on cars with much greater flow requirements than Sprites, for sure.
My solution was to use a pump whose backoff pressure was almost exactly the same as that of my mechanical pump, about 3 psi. A simple solution to the whole problem.