Unchecked social engineering in this way leads to disaster, the decay of society, and ultimately national dysfunction.
Martin, you really seem to overlooking that -- if there is a problem with the way that people think -- and you are offering "social engineering" as the solution -- what you are advocating is only placing the control over physical activity of a situation in the hands of A DIFFERENT PERSON, who cannot be assumed to magically NOT have the same flaws that people have -- and it is IMO mistakenly assuming the government has the power and the ability to cause a person to feel the way you think they should feel by controlling what they do.
You seem to be advocating allowing some agent of the government to lord it over everyone, in order to stop them from WANTING to lord it over other people, or for using something external as a means of status seeking. I see a problem there. This position is likely to attract the biggest lord it over everyone type of personality in the area.
Too often establishing policies for the purpose of "social engineering" is in danger of simply being: I (We) have determined that I (We) am smarter (or more loving, or more noble) than you. Therefore, the only smart, or loving, or noble thing for us to conclude is that I (We) ought to control every aspect of your life. If you disagree with me (Us) that is evidence that you are not as smart (or loving, or noble) as us and that justifies Us using force against you because of it.
I do not see you arguing in favor of individuals being more loving, tolerant, accepting, caring, etc. on a personal basis. On the individual level, I would suport a person looking deeply at motivation, potential outcome of action, etc -- as long as we are talking about one doing so by their own choice, understanding, and agreement about what is right action in a situation. What I see is you arguing for the use of force (by way of policies) to implement what you think other people ought to do, think and feel. Sorry, but I cannoot agree with you in support of attitudes/ideas that I have a right to lord it over other people -- especially inside their own heads -- and especially in areas of another person's life that has little to NOTHING to do with me.