I fully agree with this, I see it as one value to be upheld among many others in a Pareto-like trade-off. Optimizing for only a single value is going to lead to pathological outcomes as you rightly point out.

But I do consider it an important value since a lot of the motivation behind redistribution is self interest and jealousy (this is a finding in social science research), benelovant compassion only explains a small proportion of the variation.