An interesting response to the present economy with a fair amount of forward thinking. Well Done!
Yours seems to be a systems approach, that can indeed provide alternatives for people to choose from. The important words in that sentence are “for people”. People are the linchpin and the hand grenades of all systems, no matter how predatory or nobly conceived.
How you will get people to co-operate willingly and over a long term venture, when their lives, loves, or dreams, may alter or be upended, will ultimately determine its work ability. Israel started the Kibbutz, problem was, while it was a great way to integrate waves of immigrants, the children, who grew up there, overwhelmingly rejected it.
Choice is a good start, but that choice has to offer much, if not all, of what the prevailing economic rewards are, for both success and satisfaction. A family business may well get by, taking care of the immediate family, but a system such as you envision, requires more.
In my area, Sonoma County, just a bit north of the Golden Gate Bridge, has Oliver’s, a very good market, that is employee owned, just as Hammacher-Schlemmer is. There are farmer’s markets, which are a start on your idea(l).
The problem of human nature, and how to cope with it, in all of its strains, is ultimately the deciding point.
In our Constitution, no branch, at least initially, was given sole power, or even major power, over the other(s). That seems to have changed, for the worse. If we cannot right our government, keeping it limited, and favoring all equally, it will not likely last. Those who have been turned aside, for all the reasons you list, will simply tear it asunder.