Interesting and worthy post.
I've long felt that the incentive based model works well as long as it is predicated on the fundamental idea that we live in a world of "plenty." Alas, many incentive based models (including various versions of capitalism) seem to run on the "world of scarcity" model... which (when married to human nature) leads to fear of missing out, which leads to greed, which leads to hoarding... first by many, subsequently by a few, "Monopoly" style, while the majority end up "bankrupt."
Maybe that's just the natural order of things? Maybe I'm too idealistic, and the idea that we can have something other than a repeating cycle of building-tearing down-rebuilding-tearing down is pie in the sky.
I prefer incentive based models... I prefer to do things to gain benefit, rather than avoid things out of fear of consequences.