Ingenious simplicity. I am sorry but I can not agree with such offensive classifications regarding this circuit - "crappy", "nasty", etc. If it really was, it would not exist perhaps more than a century. Instead, I would say this is another example of what Don Lancaster has called "elegant simplicity." Moreover, I would say "ingenious simplicity" because it is essentially just a capacitor in series to the load. That is why I propose, first at all, to explain its idea in simple words... and not in learned phrases worn out by repetition...
The problem is to reduce an (AC) voltage. For this purpose, we can connect an element in series to the power supply with the idea of subtracting ("stealing") a part of the voltage.
The "stupid" solution is to connect a simple resistor or the more sophisticated transistor. Both will dissipate colossal power in this case especially if the load requires very low voltage. To show this, a few days ago, I suggested to my students to power an LED (2 V) from the mains (310 V peak value here) in this way - by a resistor in series. Then I reminded them to calculate the power dissipated by it... and they were very surprised by the result. Thus, they became convinced of the futility of losing a voltage of 318 V across the "ballast" element to obtain a voltage of only 2 V across the LED.
The clever idea is to connect an opposing voltage source in series. Its voltage will be subtracted from the supply voltage and only the residue will be applied across the load. What should be this source? It should be time-varying and rechargeable source. Thus it will alternatively absorb and return power to the circuit… and there will be no loss of power. The capacitor acts as such a source here...
Capacitor vs resistor. So, the capacitor's clever trick to decrease voltage is to absorb power by storing it while the resistor's "stupid" trick is to absorb power by wasting it. Another clever trick to reduce voltage is "by switching"... but this is another story...
The load. However, the load must pass current in both directions. Such a bilateral load is, for example, an incandescent lamp. In addition, it is slow-acting; so there is no need for a filtering capacitor. Since the LED is a one-way load, we connect a diode bridge before it… and since it is fast-acting, we connect a filtering capacitor in parallel to it.