I guess this works if you have a team of mostly jrs or are working on something truly unique. Most software doesn't have challenging work - it's mostly basic, boring, run-of-the-mill CRUD and/or API integration. Especially when you are working on a mature product. It's been years since I've worked on a project that even had tasks that would take more than a week.

You also absolutely need some constraints- "do this any way you want" can lead to "resume driven development." Too much of that and your code becomes completely unmaintainable. Which I guess is usually fine if you're a startup lighting VC money on fire, but if you are developing software for paying clients then you won't be in business long.