I'm not sure it's intended to reflect the real economy. It's a useful model that shows how success and wealth inequality can arise for reasons of pure luck, and

I'm not sure it's intended to reflect the real economy. It's a useful model that shows how success and wealth inequality can arise for reasons of pure luck, and can have nothing to do with meritocracy. I'm not sure any of the points you raise really change the fundamental dynamics of what's shown here.