I feel like I've suffered through this type of "leadership" for the past decade. When it works, it's great (although I feel you've kind of traded traditional authority for slight manipulation/scheming on part of the leader in such instances). These instances have also always involved more experienced team members.

When it doesn't work it's useless. Instead of just getting told to drive straight off a cliff you get to wander around in a forest for a while and when you eventually find out you're lost it's way too late.

As always (and as TFA points out) the person you pick for a leader still needs to actually possess whatever skill set your flavor of the month leadership style requires.