Yes – with less efficiency loss than any other. That’s partly why it’s only 2 speed.
Efficiency is one of its benefits. You can spend more time in the best chainline area of the cassette by using the hub shift – better chainline is more efficient – esp when using the bigger ring sizes that the system encourages.
Might struggle in MTB market as efficiency isn’t a prime consideration for many – lots of 28x 10-50/1/2 drivetrains in use.
The other issue in MTBs is compatibility with a big enough chainring to reap the benefits. 38/40T would be useful, but few frames have clearance for that these days.
Not an issue on road/gravel.