Two issues with alpha:
1) Do we really care about "true scores"? Despite the name, a person's true score is
not their actual level of the attribute of interest. It's just the average score they'd get if we could hypothetically repeat the test a very large number of times, with each administration independent of the other administrations, and their level of the attribute remaining unchanging. Whatever sources of invalidity are present in the test are present in the true score too. So again, is it something we should really care about?
2) Even if we did care about true scores and true score variance, alpha is not a very good estimate of the proportion of true score variance anyway, since it (usually unrealistically) assumes the measure is essentially tau equivalent, with no correlated measurement error across items.
Useful article:
On the Use, the Misuse, and the Very Limited Usefulness of Cronbach’s Alpha
People tend to always report and worry about alpha because A) it doesn't require you to obtain any other information beyond responses to the test; and B) It's available in SPSS. But there are plenty of other ways to assess the reliability and validity of a test. So maybe the solution for the OP could be to consider the psychometric quality of the test from other perspectives. E.g., can you show evidence for content validity? Convergent and discriminant validity? What have other studies found out about this test? Etc.
The problem with low reliability is that it damages the validity of the measurement and attenuates relationship you are studying (makes them closer to 0).
Interestingly, measurement error does not necessarily result in attenuated correlations between variables. The opposite can occur, if correlated measurement error across variables is present. There is a simple simulation showing that in
this article by TalkStatters.
