You don't get it, absolutely
First, I'm not saying that all coins created equal is communism. This was only to show you how false your approach is. Further, you don't understand what the word utilitarian means in this context. In the given context it means serving for achieving particular end, so if something doesn't help in reaching it (or even gets in the way), it is either non-utilitarian or even anti-utilitarian (for this specific purpose). This is not about free market versus communism dichotomy at all. It is about whether something is utilitarian or more (less) utilitarian for a given purpose. Miners as such play only utilitarian function (whether you like it or not), that of confirming transactions (and generating new coins). The whole thing is certainly not about them earning profits, it is not the purpose of mining. Beyond that purpose they are useless. If you proceed with this understanding, you will likely see my point
Profit is the incentive to fulfill their purpose, or utility. You surely recognize this.
Unless you forcefully want all miners to behave as NGOs. I postulate this would devalue Bitcoin as well as taxing all miners.
On the other hand, if you want small miners to have a chance to profit, your argument is valid against said miners as well. This would imply a broad tax over all users on the value of Bitcoin because of less efficient mining.
The only other possibility is that you would like that everyone is an independent miner. This is forcefully making people invest in something for which they might not have the initial resources anyway, since if everyone mines individually, variance can make it that you actually don't see any profit for a long time. It's effectively a lottery you would be implementing.
This is not the way a sound economy works.
As for Proof of Stake. You would be diverting rewards from Energy into Capital. This is the way FIAT works.