Some of these points are fair but I want to clarify the co-op idea has less to do with an argument that "all small business owners aren't fair," and more about

Some of these points are fair but I want to clarify the co-op idea has less to do with an argument that "all small business owners aren't fair," and more about wanting to get rid of the very distinction between labor, ownership and management. In other words, fair management is one thing; abolishing management as such is something else. Like you point out, "Obviously not all businesses are owned by the people who work in it" -- I think that's the heart of this issue. (That said, in what I've seen of the co-operative movement, there do end up being some sort of specialized managerial people much of the time. So it's far from clearcut on the ground, as you're pointing out.)