Your suggested replacement is unquestionably an improvement appearance-wise, but there's more to a set than appearance. Inlay replacements give you a distinctly different chip than one with an intact original inlay, as it creates an ugly second recess within the chip's molded recess and replaces an inlay with a decal, effectively (imho) turning a compression clay chip into a china clay chip.
It's a not unreasonable approach to filling out a set where the appropriate chips simply don't exist or are nearly impossible to obtain, i.e. turning random hotstamped solids into fracs. I think it's a poor choice for replacing an original, authentic, compression-molded inlay in an unusual and distinctive set.
I would interrogate your purpose in making the set. If it's to make an attractive set to put into play, you've got lots of options for that already. If it's to have a complete set from this unusual source, then swapping out one denom for a fake replacement seems like it would undermine the purpose. If the plainness of the original $1 puts you on tilt (which is understandable... it's such a noticeable and jarring difference from the other denominations!) then maybe this is a set you'd be better off leaving out of your edited collection.