Blind driving wheels (i.e. no flanges) were not uncommon on steam locomotives, though IIRC in the US those were typically used on narrow-gauge locos that ran on lines with extremely tight turning radiuses.  Never heard of drivers that could move side-to-side before. I suspect the damage wrought by the AA-20 was a result of the locomotive's massive size and weight rather than the flangeless drive wheels.

N&W 611, for example, is the largest and heaviest piece of equipment to ever operate on the Strasburg Rail Road, so when she visited for the first time back in 2019, there were serious concerns that she might damage the track, especially the switches.  Fortunately, the track held up just fine (though you could hear the rails squealing in protest when she passed over some of the tighter-radius curves going into and out of switches).

Holy CRAP!  I'd heard about this years ago, but figured it was either a scam to bilk naïve railfans or else well-intentioned but wouldn't ever go anywhere.  But it's legit and they're actually doing it!  And they appear to be succeeding.

Long story short, a bunch of die-hard railfans have formed a trust and are building a life-size replica of a Pennsylvania Railroad T1-Class duplex steam locomotive.