#2 The system you describe is also bureaucracy.
The claims made by davidgay are flawed and if UBI is a good policy, it should work despite those claims.
Making weak, unsubstantiated claims about anything is a good way of undermining it.
My criticism here is to stop muddying of the waters and focus the discussion on the core arguments around how social protection should be done.
For a pretty balanced fictional treatment of a future with UBI I recommend James S. A. Corey's novel series "The Expanse" (now a SyFy TV show). Specifically, the novella "The Churn" deals with characters living in a society with universal basic income, and to a lesser degree "The Vital Abyss".
Thanks also for "The Churn" tip. I'm enjoying syfy's version.