I disagree with it unless you think the allies are underpowered. Letting England choose where to spend all of its IPCs makes Sealion more difficult then the capture of India more difficult for example. If you have a new British player it could be a bone to throw him.
This would be similar to making the French Navy and land units roll to see how many side with the Germans after France falls. As rolling for Vichy helps the Axis.
There are alternate set-ups available on the Larry Harris message board. The last Alpha.1 was pretty “pro-London” if I recall and still a decently balanced game (at America’s expense). Featured more early battles with the Brits and Italians in particular.