It also adds a small layer of politics since it rewards your opponents for attacking each other instead of you
Once on the stack, a copy of a spell is similar to an ability: it's not represented by a physical marker, so players simply remember it's on the stack until it resolves or otherwise leaves the stack, at which point it ceases to exist
Tangled Colony probably works best in multicolor decks where you have access to some direct damage spells, or at least spells that force creatures of your choice to fight.
That's because Magda can use those dwarves to make treasures, and then use those treasures to cheat any artifact or dragon from your deck into play
You can bake in some great EtB creatures, and enjoy having the best of an equipment deck with a flicker sub theme
The red and white for Clouds color identity is apt given his bold but ultimately altruistic character