Sure. That's pretty much what's going to happen. But mind you, I am not seeing things being much better now compared to that future. Democracy to me seems to work only on paper, while politicians, lobbyists, corporations et. al. do whatever the hell they want. But I am not willing to derail on this point, just sharing an opinion.
> ...a society in which everything is produced by machines and the average citizen receives everything he needs to survive from the government sounds like a dystopia to me.
As with everything else, it's a balance. I'd like to not think about utilities and rent and basic food needs, yes; on the other hand, I am okay with the idea that if I want that 75" QLED TV, or a car, or the best chair recliner on the market etc., then I'll have to work a bit for those.
One way to push people into working even with UBI in place is likely to make the places where food is distributed for free inconvenient or not very ergonomic; many people would like to avoid certain inconveniences or even forced social interaction so they're likely to work just to avoid changing their habits. And publicly funded places gaining bad entropy is pretty much a given anyways; nobody has to do anything, it just happens eventually, by itself.
> I don't trust the state to administer this prospective neo-Oceania.
Me neither, but not sure if for the same reasons as you. Governments are, in the end, hugely ineffective. That's basically their defining characteristic. The moment they have to do something mildly responsible they are very happy to outsource to the private sector, and things turn to shit in months. Government is only really concerned with gathering taxes. :(
Overall, I believe systems like we are discussing can be made to work. But I am not sure I trust people to do it. And of course, there's going to be a world war before anybody remotely influential will allow a machine to call the shots in their place.