Driftwood won't really soften soft water, although it may well acidify it. Water hardness is caused by carbonates or calcium/magnesium salts (depending on what sort of hardness you're talking about), getting rid of them generally requires that you react them with something that makes them precipitate (and the key there is to not then dissolve again), exchange them in some sort of ion exchange resin (like salt based water softeners) or to replace water with softer water (essentially just diluting them).
The problem with wood in soft water is that any tannic acids or similar will have a greater effect on the pH as there isn't so much buffer in soft water to keep the pH stable. That said, a lot of soft water fish like it acidic anyway, and it tends to be a very slow process. The slower the breakdown the better overall though, which is why we tend to use woods that are very slow to break down in water, so most of the commercially available stuff will be on the better end for not messing with the water chemistry.