This will allow ideas like basic income and the citizen's dividend to flourish.

With proper wealth distribution, this could have already been a reality. But the reality is the fact that "idiots wasting billions to drive yachts the size of a football stadium only used by 7 people", as you wrote it.

Basic income should be real. If not monetarily, then in food, water, housing and safety. Everyone deserves to live a proper, normal life. To be able to eat, drink, and not freeze to death.

We can instead spread those resources throughout the metaverse.

The people, who are mostly in need (at least nowadays) do not have the technology to use the metaverse. And the above mentioned things cannot be distributed in the metaverse. These things should be for everyone in the physical world.