Incentives can be carrots, they don't all have to be the specter of death. I think lack of social mobility and not seeing any meaningful achievements materialize from your hard work, seeing retirement and property ownership move further away all play into this.
We can have social support/nets besides UBI right. I can agree with the negatives you point out. I'm just skeptical of UBI as the best solution.
One thing I've never heard addressed is how you'd scale it. We see this with COVID payments. You either give enough to live like a king in rural areas or give enough to live like a pauper in urban areas. The US is a huge country with many diverse populations/needs. UBI seems overly optimistic and poorly targeted.
But somehow people feel that those supported by social welfare deserve to live in whatever place they prefer, no matter how expensive it is while people who pay for their own housing are forced to choose somewhere cheap enough they can afford.
There are neighborhoods in my city with required minimum house construction costs. You're not allowed to spend less than a certain amount to build your house!
> People derive their sense of self-worth
I 100% agree with this, but I'm not so sure that everybody would act correctly to maximize this for themselves. I think we do need to be careful to intentionally craft society that incentivizes us to do activities that build genuine self worth.