Your definition of value is very narrow.
A thing doesn't have to be physically tangible in order for it to have value, or even to create value.
Think about an engineering education, for example. The education itself can produce tremendous value, even though it's just a configuration of thoughts inside your head.
Or how about a musical performance? It has a transient form, temporarily altering the state of air molecules and vibrating your eardrum. But hearing it might improve your mood, or inspire you to be productive at work, or to create music on your own which in turn inspires others. It's not tangible either, but it still creates value.
I'm not sure I defined value in any way the precludes music or education. But I'll leave this be in favor of the rest of your post.
Even rent is valuable. I rent my apartment because I cannot afford a house, I am not interested in owning a house in my area, and my only alternative is living on the street. The rented apartment provides shelter, warmth, and privacy, all of which I value and am willing to pay money for.
The key here is that a thing is valuable if people are willing to pay money for it.
But maybe there's a configuration in which people still got shelter, warmth, and privacy, but without ceding a 15% IRR to a nameless, faceless landlord. Perhaps your municipality could decide to be friendlier to co-ops and less friendly to landlords. Then you could elect a board of directors that spent that money that would be a dividend to the landlord on some capital improvements that the apartment needs. Or maybe they just lower rents.
I'm not fundamentally against landlording. As I said, I'm a landlord myself. But I strongly feel that any value that my properties provide comes from builders, contractors, gardeners, the management company, etc. I'm pretty passive. I mostly just sit back and collect checks.
Because of this, I'm not of the opinion that value creation and who gets compensated is fundamentally "correct" under our current construction. There are all sorts of different ways to operate an economy. I'm open to new ideas.
No one thinks sitting on your ass is valuable. No one is willing to pay money for it.
1.) I disagree. Leisure time is extremely valuable. My own leisure time is valuable to me, of course, but I think it's important for everyone to have it as well.
2.) UBI doesn't pay you for sitting on your ass. It pays you irrespective of how you choose to spend your time. No one is compelled to sit on their ass in order to receive a check.
See, this is what I'm trying to communicate.
Even here, you readily agree that government fucks things up because it is comprised of individual representatives whose duty to public service can be compromised by outside incentives.
And yet your proposal for UBI involves implementing more government.
Do you see why that doesn't make any sense?
I think government, and representative democracy in particular, is an unambiguous good for the advancement of mankind. The world is infinitely complex, and understanding and making informed decisions about everything is beyond the capacity of most people. So we outsource much of that thinking to representatives so we can focus on the things we are good at. Representatives, in turn, outsource further to specialists and technocrats. Inevitably, those specialists and technocrats are going to put their thumb on the scale in their own interests. Like a landlord advising the city council on zoning laws.
We should fight corruption where we can, but broadly, I think the system works reasonably well. A steering community (government) checked by the people (voters) who directs human effort (as measured by tax revenue) in the direction of progress at the recommendation of experts (scientists, universities, bureaucrats, business-people, etc.).
The downside is that we're seeing a massive concentration of wealth and earnings. Rather than unwinding the entire system, which serves us reasonably well, I'm in favor of "floor-raising" measures. Guaranteeing healthcare would be a good start. Guaranteeing a base level of income should make the list at some point too.