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It will work well in some situations. The individual would have to be able to live independently.
If someone needs care around the clock it wouldn’t do any good for their caregiver to be in a separate household, even if they are right next door.
Where I live there are a lot of over the garage apts and small house behind the main house built years ago when zoning laws were pretty non-non-existent. Then the zoning laws came in and that stopped.
Also the cost of adding/digging water/sewer/electric/gas lines to the flat. Higher homeowner's insurance, and higher liability insurance. When it comes to selling the main house along with the granny flat, the amount of buyers will be less as this is a unique situation.
One concern is when the granny flat is no longer being used for an elder. What would the owner do? Use is as a home office would be great as the door to the flat is separate from the main house thus a business expense for income taxes, or rent the building to tenants [one, two or maybe 3 people]? Singles or a small family?
Lot to think about.