You still have the problem of misaligned incentives

Not really sure what you mean by that. Socialism leads to better alignment of incentives. If everyone is benefitting from the system, contributions to the system are incentivised.

That is the opposite of capitalism, where the individual tries to gain any advantage they can, even at the expense of everyone else. And broad advances and contributions of work benefit very few people, by design. That leads to lower trust, which further entrenches the idea that the individual has to look out for themselves, and is thus incentivised to game to system.

together with the fact that the only way to mitigate it is through coercion

I reject that premise.