Really its about balance - but at the moment there is little real balance. We live in fractured cells as individuals divided from our society and the consequence is an epidemic of mental illness.
It is true to say that you cannot substitute wealthfare for real "society" - but when society is all but totally broken as a social institution it is an essential prop to prevent total anarchy.
Competition has its place - but it is only a relatively small part of the overall mix.
I agree that as a society we need to take care of the ill and help those experiencing hardship, but we also need to cut off the cancerous tumors that grow on society. Communism comes to mind, tumors of horrible idea's that become cancers sucking away the lifeblood of society. Our system should be one that rewards the behaviors that have lead to the greatest achievements and understandings of mankind, and punish or the very least not reward activities that lead to the degradation of society. People who become dependent on government handouts are a very real phenomenon that accompanies the idea's of socialism and communism for example, a phenomenon that degrades all of society.