Yes. People everywhere use this method in different climates and with different litters.
Yes, just like Deep Bedding except for the moisture and ground contact, which create the conditions for composting to occur. Deep Bedding, being a dry system, doesn't break down -- other then by the mechanical action of chickens scratching, which creates a fine dust of mixed bedding particles and dried poop.
With either system you need to clean when the bedding/litter pile up deeper than is convenient for you or an odor develops that doesn't go away with the addition of another layer of bedding/litter.
My observations here on these forums lead me to conclude that most failures with either system come from having too many chickens in too confined a space so that the manure load overwhelms the ability of the volume of bedding available to absorb and that most of the rest of the failures are due to an ill-drained run that is wet-wet rather than moist.
Some materials -- straw and leaves especially -- tend to pack, mat, and form anaerobic pockets. This is why I advocate a mix of materials and textures if possible. Those coarse wood chips are superb for keeping the mix well-aerated and preventing packing/matting.
In addition to the above, different places have locally-available materials which have the advantage of being cheap/free. Here in the US Southeast I have pine straw -- the long needled of the Longleaf and Loblolly pines. I've heard of rice hulls being available in some places and I'm sure that there are other local materials in other places.