Fractions
I'd just use the normal \frac or \tfrac. For display style maths they still look the best. I would use \nicefrac (or similar) only (if at all) in text maths.
Code
\documentclass{article}
\usepackage{amsmath}
\def\frstfrac{\frac{2}{\sqrt{2y+1}\sqrt{2 \pi}}} % just a shortcut
\begin{document}
\begin{align*}
&= \frstfrac \exp \left( -y - \frac{1}{2}\right) && \forall y \in \left[- \frac{1}{2}, \infty\right) \\
&= \frstfrac \cdot e^{ -y - \frac{1}{2}} && \forall y \in \left[-\tfrac{1}{2}, \infty\right) \\
&= \frstfrac \cdot e^{ - \left(y + \frac{1}{2}\right)} && \forall y \in \left[-\tfrac{1}{2}, \infty\right) \\
&= \frstfrac \cdot e^{\textstyle -\!\left(y + \frac{1}{2}\right)} && \forall y \in \left[-\tfrac{1}{2}, \infty\right) \\
&= \frstfrac \exp \left( -y - 1/2 \right) && \forall y \in \left[- 1/ 2 , \infty\right)
\end{align*}
\end{document}
Output

\smash
Also, consider using \sqrt{\smash[b]{2y+1}}\sqrt{\smash[b]{2 \pi}} in your denominator for better roots.
To quote from the amsmath documentation:
With the amsmath package \smash has optional arguments t and b, because occasionally it is advantageous to be able to “smash” only the top or only the bottom of something while retaining the natural depth or height.
Compare:
Code
\documentclass{article}
\usepackage{amsmath}
\begin{document}
\begin{equation*}
\frac{2}{\sqrt{\smash[b]{2y+1}}\sqrt{\smash[b]{2 \pi}}} = \frac{2}{\sqrt{2y+1}\sqrt{2 \pi}}
\end{equation*}
\end{document}
Output

The top bar of the root is aligned different and even the lower point is not on equal heights.
LaTeX Companion
The LaTeX Companion has a very elaborated text about \smash and its uses. The first two examples (licensed under the LPPL) are shown here. Take a close look at the root's lower end and the top bar.
Code
\documentclass{article}
\usepackage{amsmath}
\begin{document}
$ \sqrt{x} + \sqrt{y} + \sqrt{z} $ \par
$ \sqrt{x} + \sqrt{\mathstrut y} + \sqrt{z} $ \par
$ \sqrt{x} + \sqrt{\smash{y}} + \sqrt{z} $ \par
$ \sqrt{x} + \sqrt{\smash[b]{y}} + \sqrt{z} $
\[
\sqrt{ \frac{a+b}{ x_j } } \quad
\sqrt{ \frac{a+b}{ \smash{x_j }} } \quad
\sqrt{ \frac{a+b}{{}\smash{x_j }} } \quad
\sqrt{ \frac{a+b}{ \smash{x_j+b}} }
\]
\end{document}
Output
