Yes but also no. I agree but there is a big grain of salt to be had here. Yards like also help pests thrive too. Particularly ticks and rodents come to mind. Lots of hiding areas that are safe for rodents to avoid seen / caught. Easy safe pathways for skunks, raccoons, possums etc. Ticks are gona love the tall plants and moist conditions. Earwigs are gona be all up in almost everything that is there. If there is anything that grows fruit, well you vet your ass theres gona be way more paper wasps/balshead hornets/ yellow jackets etc. Is the increased pollen going to now cause more allergies for 8 year old Timmy next door? When winter rolls around all those wonderfull bugs and critters 100% gona want to cozy up in your 2000sqft home. From attic, basment, or kitchen Cupboard.
Eveyone seems to miss the fact that a diverse environment doesn't only just attract bees and Butterflies. It wouldn't be "diverse " if it did.
The big reason we grow grass and keep it short is for pest control.