Problem with rampant dandelions is that they take over, reducing biodiversity and their growth habit reduces ground cover which leads to runoff problems. So a big spring flush, then they go away, you're left with a runoff nightmare when the heavy rains come. Maintaining a nice grass monoculture might not help with biodiversity, but better to resist bad runoff and the like, and a more comfortable use for activities.
Bee turf, seedum turf, drought-resistant fescues with native wildflowers are all great alternatives to the traditional ornamental lawn, but their benefits go away when invasive weeds take over. If dandelions push out the other flowing species, it's a bad day for the bees since dandelion pollen is neither that good a source, nor the first source of pollen for bees (but the myth has persisted anyway).
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