Disregarding what it means to be player driven or not I would say that play where we are spending substantial amounts of time exploring and learning about the setting and engaged with conflicts that are external to the characters' concerns so that we can get to the points where our characters concerns are central is more focused on the GM's setting and less focused on the players' characters' concerns. That sort of play, while enjoyable for its own sake, can feel like jumping through hoops if your concerns are those sorts of personal stakes.
What if you don’t have to spend a substantial amount of time exploring or learning about the setting, yet the campaign is still managed using my Living World sandbox approach? Would that partially address the concern you're raising?
As for "conflicts that are external to the characters’ concerns," the idea that the setting has a life of its own is central to the appeal of a living world. And I think that's where we may have an irreconcilable difference in approach. However, within my own style, there’s the principle of proportionality. Yes, there are larger currents in the setting, and yes, they can eventually impact what the players want to do. But those changes usually take time to play out, often unfolding in gradual stages rather than all at once.
Meanwhile, life goes on, including for the player characters.
For example, in my Blackmarsh setting, there's a historical event called The Mountain That Fell, an asteroid rich in magic that slammed into the region, forming Smoking Bay and fracturing the surrounding land into swamps and marshes. If that had occurred during play, it would have overshadowed everything. But that’s rare.
In contrast, the
City State of the Invincible Overlord civil war played out over three decades of in-game time. It had real impact, of course, but the immediate effects were sporadic and localized. Some groups of PCs chose to get involved. Others wanted no part of it, and they were able to avoid it without undermining the campaign’s integrity.
That’s what happened in the Majestic Wilderlands campaign I’ve linked before. After the events of
Look Squirrel I Shot the Sheriff, the players decided to focus entirely on the threat posed by the dragon Pan Caulderax. They made a point of steering clear of anything related to the City State or the civil war, and the campaign supported that.
You raise a good point about creative spotlight. My campaigns do highlight the setting initially, it’s a scaffold the players climb, not a cage. Over time, most of my players end up shaping parts of the setting through their choices, and their concerns take center stage naturally.