What is L1 regularization, and how does it differ from other regularization techniques like L2 regularization? Explain the role of L1 regularization in the context of feature selection and model complexity. Discuss how L1 regularization affects the model's coefficients and its ability to perform automatic feature selection by encouraging sparsity. Additionally, highlight scenarios or types of datasets where L1 regularization might be more beneficial or less effective compared to other regularization methods.