That's not what everyone is doing. Shrines gives more cc than shacks, so one shrine for each 2 shacks and you won't need to sell streets and build runestones, you will have enough diplomacy and get more cc.
I doubt you get your quests done faster that way.
It's what a lot of people are doing. It's not like I *don't* run shrines (of course you need to to make the copper to run your goods buildings) - but i never have so many up to just have the diplomacy for the next unlock. It'd take either a lot more expansions than I've been running or a city biased towards making excess copper instead of maximum sustained goods. But that's rather the point, it *doesn't matter* that i'm nowhere close on diplomacy targets. Because a quick bulldoze and rebuild later and I have diplomacy (often just bulldozing roads which puts the total time cost at 1 whole minute waiting for the runestones to build). There's no reason to include diplomacy-for-the-sake-of-diplomacy in your layouts. So as it stands, diplomacy may as well just not be a thing.