Are trackless rides overrated? Slow romps through Big warehouses with less intimate show scenes just so we can have multiple ride paths? Why are they so popular? Or are they just popular with the people making them?
Here's a brief history of LPS/Trackless ride systems. But if you want a short answer
"It depends either on the execution, budget, and effort".
Pooh's Hunny Hunt (Tokyo) was the first Disney Attraction at the parks that used the trackless ride (LPS) system (Universe Of Energy and The Great Movie ride used a similar system, but it had different technology) and the first of it's kind. The ride was able to make the Hundred Acre Woods and the Pooh universe to look more convincing and lifelike. The AAs for Pooh and friends were given fur instead of being made of plastic, and the rooms didn't feel like a warehouse. The attraction is still one of the most popular attractions at Tokyo.
Disney's second LPS ride was Mystic Manor which had guests tour around Henry Mystic's Manor. The preshow gives guests some backstory for the characters Henry Mystic and Albert the Monkey as seen in this video.
Meanwhile, Sea World Orlando created "Antarctica: Empire of the Penguin" which was the first attraction in the U.S. to have the Trackless ride system. However, the attraction itself is boring (CGI Penguins inside small screens) and not that much to look at. However it's a good place for guests to go on during very hot and humid days (especially in Summer).
Outside of America, Motion Gate Dubai tossed their hat in the LPS ring and created a collection of trackless rides based on Dreamworks and Sony IPs. The execution is terrible, the ride vehicles moves as slow as a snail, and the AAs look like something you would see at the old Disney Store windows. (The worst is Hotel Transylvania, The Smurfs, and Ghostbusters).
Meanwhile in The Netherlands, Efteling was working on an indoor dark ride "Symbolica" featuring their mascot. The park has had a decent track record when it comes to designing rides and shows. The park even created a behind the scenes series talking about the ride's development. While the AAs aren't to the level as Disney, for a non-Disney Park it's actually impressive. The park constantly updates certain sections of the ride and has interactive elements. The ride itself was actually very expensive in Europe and The Netherlands.
Here's a Youtube Playlist (9 episodes) talking about the development process leading up to the ride's opening and reception with pakr guests.
Back to the Disney Parks, Tokyo Disneyland is currently working on the park's second trackless/LPS ride located in Fantasyland for Beauty And The Beast. Despite the attraction's development getting delayed/pushed due to the ongoing COVID-19 pandemic. Disney released a video showing some of the Audio Animatronics (such as Belle and her horse). They also showed concept art of the "Be Our Guest" section. While we can't comment to much on the ride since it hadn't opened yet. A lot of Japanese guests are excited for the ride.
Sorry if I didn't bring up Rise Of The Resistence, but I want to avoid rambling on.