Appleseed, you beat me to it.
A few people have mentionned that freeing up the market would lead to inflation of the ally market.
Well, in fact, it would be just the contrary. If demand for allies stays the same as before (why would it go up?), having a larger base to buy off will make prices go up slower. Not being able to buy half of kaw's allies leads to a distorted market: one half being inflated, the other one being stuck under a regular market price. Freeing up the stuck part will have those allies going up till it reaches market equilibrium (which would be at the current market prices for regular allies).
This will indeed slow down inflation (it will however risk to slightly cut a few LB's BFA, but this should be marginal).
Inflation is currently being created by b2b HTEs (and Smoke Signals having a plunder output not far away from it). Players are earning triple what they were earning a few months ago, a lot of that gold flows into the ally market.