1 - No problem, the industry will suffer with low effectiveness.
2 - I can't find logic in this, if the consumer isn't satisfied, the market will adapt. (or you really think that government will research? Have you seen Russia?)
3 - Didn't understand
4 - So what? People with less knowledge will work in less educated jobs, simple as that. Today you have the point 2 you mention together with this point, and the service (especially govern service)
5 - Wrong. If a person have money and want to save cultural objects, he will. Not everything that values is money, you know.
6 - Same answer the point 2 have. Consumer satisfied matters.
In communism/socialism/fascism you have the govern producing things that will be equally distribute among the masses. If you don't like, what you gonna do? Who's going to change for you, since they don't have to worry about losing market?
Stay open minded, not closed minded friend. Anarcho-capitalism and Austriac School of Economics have all the answers you looking for, just search.