So, you agree that society needs to provide some kind of incentive to steer everybody in the right direction--since, as you said, compassion is neither reliable nor really necessary. And, as you also said (through some very well-written but kind of overly-long sarcasm

), shooting anybody who doesn't work hard enough is not an option.
Now, I have no objection to shooting anybody who tries to kidnap somebody's child, or commit rape, but in general, the incentive needs to take the form of a carrot--errrrr.....I kind of don't like vegetarians, so let's say "cake" instead.

The incentive needs to be a cake instead of a stick, we agree there too.
Where I and you differ (in fact, where I and just about every Communist wing nut on the planet differ) is on what kind of cake to offer. I'll cut right to the chase: all the blabbing about non-material cake, working together because it makes sense to keep everybody around you happy so they'll help you, and just generally depending on the better nature of people, is bullcrap. Any group of wild animals proves that--they have a strong incentive to help each other in their own self-interest, yet for some strange reason, wild animals attack and kill each other all the time. Also, there are more than a few people out there who are simply not mentally wired the right way to make your work. The cake needs to be physical and solid so as to provide incentive to as many people as possible.
In other words, the cake must not be a lie. (Sorry, couldn't resist that one--Portal kicks ass)
And when the real and material cake is offered, what kind of system do you have?
Capitalism.