I've had no problems with Daryl. Make sure there are BOTH beasts and Murlocs in the game before picking Daryl, otherwise the pool of token generating minions will be limited.
Daryl's isn't my favorite, he's hard to get #1 with, but in a meta favoring divine shields, creating a big reborn divine shield Dragon or Deflectobot followed up with the dragons that grow when friendly divine shields pop is usually enough to be in the late game.
I just play him low curve and either dance a 1/1 divine shield taunt or if things roll just the right way a dragon or deflecto. then eventual more diine shields. I often hold minions to get a better dance turn if I don't think I'm going to lose too badly. I usually get 1-3 place. He's an extremely good hero.
Daryl is still very strong hero, easily S tier. But since the game has become a lot more aggressive and you take bigger amounts of damage, you should not be greedy with the dance, you should dance faster and dont tunnelvision into dancing in one particular minion.