Education, and the fostering of independent civil society, which is something you don't see in authoritarian societies. The virtues you want to instill in a democratic society, contrasted with authoritarian ones, are truth vs. propaganda, accountability vs. loyalty, and courage vs. obedience.

I think you are leaning too hard into moral relativism. The differences between free- and authoritarian societies are plain to see.

> No way. I'm shocked.

Please don't do this. Criticizing and thinking about the outlines of new solutions is a necessary first step. Details can be figured out after people agree on what the problems with the current systems are. Obviously I'm aware of the problems of previously attempted systems and don't wish to repeat them. If we can't figure out better details than those tried before, then of course I would prefer the current system.

> people don't want to be equal as humans are hierarchical creatures

Sure, humans have many kinds of needs and wants, and climbing the social hierarchy is just one of them. Why should we base our governance and our economic system on that need instead of something less destructive? There can still be hierarchies, just not the kind of hierarchies that give people power over others. An olympic gold medalist is at the top of a hierarchy, but doesn't have much power to control other people. Hierarchies like that could still remain to satisfy the people who have a strong need for such a thing.

Also, as I've said in other comments, I do believe there might be a need for some level of differences in rewards, as not all jobs are such that enough people would want to do them purely from intrinsic motivation. In such cases there should first be attempts to find rewards that don't provide control over other people, and if that is not enough, then we should figure out if the job is absolutely necessary and increase the rewards little by little until we have enough people doing it. Not all power differential can or should be avoided, but creating them should be the last resort and they should be as small as possible.

> You can't EVER equalize outcomes because everyone is born differently and will have different physical and metal abilities and will max out at different skill levels.

Maybe not entirely, but we could do much much better than what is happening now. It's important that we have a system where people are encouraged to use their abilities to improve society, but the huge differences in the resources people get is surely not the only way to achieve that. A lot of scientists do science not because the pay is great, but because they're interested in the topic and there's fame and knowledge to be had. Also the rewards that people expect are relative. In a society where someone gets paid 300 times more than others the most skilled people won't want to do the work for less than that, but in a society where the highest reward is 5 times more than others the most skilled people would still gravitate towards that work. Maybe personal interests would have a larger part in deciding what a person chooses to work on, but I don't think that would be a bad thing.

> try to equalize opportunities so that everyone gets a shot at the same opportunities regardless of birth RNG, but you still want the best one to win regardless, if you want society to progress through fairness.

But this will eventually lead to the winners taking more and more, we end up with a system similar to what the soviet union was and we will crash. The direction we are heading in is plainly visible. The capitalist system is better than the soviet one, as it's slower to centralize power, but eventually the power differentials and resulting corruption will be large enough that the system no longer functions, and we are very close to it I think.

We can continue this way and crash and reset every few hundred years, or we can acknowledge that it is the centralization of power that causes these issues and try to build a system that avoids it as much as possible.