Looking at all the lower-layer things Allay allows us to do each time, creating more Spirit tokens is not one of them, and there are for more iterations of those loops than we have Spirit tokens at any given time
It doesnt actually do anything that requires props or flies in the face of the games normal rules, so it might be the easiest to sneak into your Commander deck
Due to this, its very much worth keeping an eye out for during the Draft itself
(Damage causes loss of life.) Illustrated by Alex Konstad Standard Not Legal Alchemy Not Legal Pioneer Legal Historic Legal Modern Legal Brawl Legal Legacy Legal Comp
As to the actual substance of the question, no, oppressing every small creature will not encourage format diversity or interesting game play
With all these ways to profit off tapped creatures, using them to destroy an opponent's creature for free makes this silly Among Us reference one to watch out for