True, one can build a society with no layoffs etc. but collectively we are just not smart enough to do it.

Systems built around profit seek efficiency, thus standardization.

even without the notion of profit, averages reduce risks and helps survival imo

No that’s not it. Averages are easy to reason about top down. Averages are like manufactured parts; you can replace them when they break or slot them in where they’re needed. They’re easy to herd as a manager because they all work the same way. Before we had societies, this sort of reasoning wouldn’t have been very useful. A tribal chief doesn’t need uniformity, he needs to understand his members, all of whom he knows from birth, well enough to utilize their talents.