It does reduce the possibility of highly on rails campaigns and instead requires more of a sandbox plan with one page dungeons and stuff. Even so, it seems made to solve this exact problem.
I don't do tabletop, but I do write, and making these is helpful for worldbuilding.
The playstyle is called West Marches.
IMHO, the important bit of this style isn't so much the player pool flexibility (tho it does help that case), but the inversion of who's driving the story. The DM prepares the world, but it's up to the players to organize their excursions outside of the safe zone, for their own reasons. This forces more involvement of the players in the story, instead of the more passive campaign on rails you mentioned.
So in the GP's case of flaky low-effort players, West Marches style may not help because it puts more burden on the players in addition to just showing up and having everything presented to them.
That said, if the group can manage to do it, player engagement should be higher, and the DM suffers less disappointment because they're only prepping a session of content based on the players' plans for that session, not a long storyline that requires more alignment and adherence.