Software patents are absurd and a form of double dipping since software is already protected by copyright they should indeed be scrapped. However just because patents are currently too powerful and have spread into areas where they don't belong does not mean the concept is fundamentally flawed.
The fundamental flaw is greed, the fact that 1000 individuals have obtained an income that is more than 3X that of 1,000,000,000 individuals combined is simply too much of a temptation to all but the strongest moral compass. OTOH, if everyone gets the same income who in their right mind would not just sit back and let "somebody else" worry about silly things such as a job?
The sweet spot lays somewhere in between, most economists put the ideal income ratio between richest and poorest at 10:1 and point to Norway's position at the top of almost every economic and social metric known to man as prima-facie evidence. Norway was smart enough to realise the North Sea oil boom would come to an end one day so they taxed the hell out of oil companies during the boom and invested it in both industrial and social infrastructure. Many economists now argue it is the social infrastructure that has seen the highest ROI.
Here in Australia we have done the opposite with our mining boom, there were some good reforms and we built lots of roads and railways that lead to giant holes in the middle of nowhere but mostly we squandered it on tax cuts and corporate welfare. In the meantime China has been buying our coal and iron ore and for quite some time has been building up their infrastructure at a phenomenal rate. Ironically they now have one of the highest inequity ratings of any nation. This is because of the discrepancy between the rural areas and the "economic zones". China is now in the process of building up the infrastructure in these rural areas but the pace has slowed because of the financial mess in the US and EU. They are now officially in deflation meaning production has overshot demand. Consequently our 25yr mining boom has come to a sudden halt and we have two fifths of fuck all to show for it. Sure our economy is still in much better shape than the EU and US, but I'm old enough to remember when life was good in both Norway and Argentina.
Disclaimer: I plead guilty to OT ranting, but I put it to the reader that a spliff and an end of the working week rant is far more humane than kicking the cat.