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This seems like a pretty annoying card in limited. I don't know if it would be better to deter them with a 1/1 deathtouch, but this may be better on offense then defense, upgrading himself when he dies. The best part about this card in draft is you can take quite a few of these in a deck with a low curve and you're either getting to essentially draw a card or turn a land into another creature. You whiff on non-creature spells but you can still serve with them. Having a low curve means you're likely to Manifest another small creature that you could flip up for cheap if you like its ability, keeping you on curve. All in all, this seems playable.