While you wont want to lose any of your creatures, Tegwyll makes for a fantastic draw engine with token makers like Bitterblossom, which constantly produces 1/1 tokens that make for excellent sacrifice fodder
If abused, this could see some play in more powerful formats, but the other effects cost far too much mana to unlock outside of a Standard and Commander environment
It helps to look at it as a bonus rather than the sole reason to play the card
Its just too powerful not to play in basically any red deck interactive decks use it as removal and aggressive decks use it to burn the opponent directly or get rid of a blocker
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Sure, you dont really want to attack with Assassins, but if you have enough to fuel this cards combat damage ability, Cloaking your opponents cards can still be worth it