2. Grinding poverty and inequality: Monarchial rule begets serfdom and a midevil class structure. furthermore that class is infected upon your name for generations. Kings decide what you can and cannot eat with hunting laws, and who you can and cannot marry by proxy of the church. in the past, even certain hats and colors were banned by monarchies.
While there are problems with monarchies, this is not one of them, not relative to modern society. Gaps in inequality were much less in feudalism (though everyone had less overall, too), and the life of a serf.... Really actually wasn't that bad, no worse than your average modern wage-slave (and serfs actually tended to work fewer hours each day than we do).
Class is still present, it's just less formally structured than it used to be. Despite what "the American dream" tries to get everyone to believe, it's nearly impossible to actually make any significant change in social class throughout one's life. The exceptions to this are all that you hear of (and especially all you remember), so it gives the illusion of being much more possible than it really is.
And there are many rules just as arbitrary as the ones you listed, including hunting laws (still, especially considering that these have never been that arbitrary), laws against gay marriage (in some places), and some restrictions on clothing (such as forcing people to wear it).
Was monarchy and feudalism problematic? Sure, but the economic aspects of it really weren't terribly awful, not in comparison to 'democratic' capitalism.