Sponges come in different types so the effect of sponge is not always exactly the same. Broadly speaking, you can think about sponges in general as being some combination of pillow and trampoline and their ultimate effect on spin especially depends on how they interact with the pips/topsheet. If sufficiently compressed, the sponge (if the right kind) can a trampoline effect. Sponge in general also allows the pips to continue to produce spin when you hit harder. If the sponge is too thin, then the spin production on harder loops/loop drives is easily capped as you will be hitting into the wood pretty easily if you don't brush thinly enough.
So for OX (no sponge), imagine using a bed with no mattress.
Remember that a mattress can have springs or can be purely foam (soft or hard). This is similar to many sponges.
If you have thicker mattress, you can bounce more on the mattress and feel okay (damping efect).
If the mattress is springy, then you have catapult (which is why in some cases, thicker sponge plays faster).
In general non-linearity of thicker sponge makes it harder to control for most beginners without training in spinning.