That's a good circuit but the wattage issue is the same and it lacks the features of a dedicated regulator (over temp, over current). The PNP is still on the hook for up to 1.5W which just won't work with the packages the OP suggested.
Right, in these modern times we have come to expect high efficiency.
You mention switching type converters. A buck converter is suitable.
Here is how a 555 timer IC might drive a buck converter.
From another standpoint, the coil smoothes pulses from the 555.
The 555 has a 'control' pin, which allows us to adjust duty cycle longer or shorter.
This simulation shows how to use that pin for the feedback function. It allows automatic regulation of load voltage.
A transistor responds to a rising output by pulling down voltage on the control pin. (And vice-versa.)
The output maintains 2.5V (give or take a tenth of a volt), over the spec 10 to 18V input range.
The 555 can provide 200 mA. If this circuit is operating properly, then it should be possible to obtain the spec 100 mA at the load.
It's hard to be sure what the 555 will do in this circuit, whether it will permit current flow through the inductor during the last half of the cycle. A freewheeling diode may be necessary.
The frequency must be tailored to the inductor. Odd things can happen if the frequency is slow. During one half of the cycle, current might flow in the wrong direction through the coil.