> The idea of the government issuing a basic income is that people can choose in their own way how to get food, clothing and shelter, instead of having to settle with whatever the government provides.

More fundamentally, in my view, is that basic income represents the citizens pro rata share of a portion of taxation that represents rents on the commons; the purpose government serves is to collect and distribute for efficiency as N:1 + 1:M interchanges involve transaction costs for N+M transactions rather than the N*M that are required for N:M direct transactions, but government has no reason to choose how the rents are spent (and there are, as you note, all kinds of pragmatic downsides when the government does that.)