Your arguments seem airtight and pragmatic. You did not address, but are no doubt aware of, the strange moral system that many hold in the US where people receiving “charity” are supposed to grovel and be made to feel bad — so the Byzantine and oppressive system is in fact a positive feature to many people.

I wish there were someone’s attempt at rebuttal here — I find this too convincing to really critique it properly! — but as far as I’m concerned you have hit the nail on the head.