Hello alaber and everyone!!
Lay Arahats, Why not?
Excellent question for Investigation.
First I would like to pose some rhetorical questions to the group, to consider.
Is there mention of being a Lay person or Bhikkhu specifically in the Four Noble Truths? Does the Buddha mention even the practice of I-making or conceit view of being or becoming either this or that in the Four Noble Truths?
Does the Buddha mention being or becoming either a lay person or a bhikkhu within the expounding of the Noble Eightfold Path?
Does identifying with either being a bhikkhu or a layperson also qualify as a hindrance to final release, identifying a sense of self with the concepts as being I , me , or mine?
What is the real difference in heaps of blue jeans, robes, skin and bones? The real difference between huts, forests and houses, all heaps of wood and stone. Is it not just in the mind wherein these proliferations occur? And if that is so, is it actual a physicality of becoming homeless that liberates, or is it the mind, for a lack of a better word, that becomes homeless in a sense, i.e. finding nothing that can become attached or clung to.
Though , I would definitely agree, that at first glance it does seem that to live physically apart from the normal marketplace mentality of society would seem rather beneficial for in depth training and study of what the Buddha taught.
But, on the other hand I would also state that any layperson could and should, if they are so inclined, take up full strength practice of what the Buddha taught, in whatever life situation the mind and body may be presented with.
Either way, the practice of what the Buddha taught is of great benefit, and this can be investigated and discovered to be true or not by each and every individual. Again, if one is so inclined, be it as a lay practioner or bhikku practioner. And , maybe since those are just papanca type labelings describing the phenomenon of the heaps of aggregates anyhow, they may be incorrect assumptions, thus the Investigation.
Just some thoughts.
Psi