centralization also results in severely less optimal results because the information and experience available to central planners is substantially less then information available to individual actors.

Not only is the information of poorer quality prior to making the decisions the quality of feedback is poor. It becomes very difficult to understand the consequences of decisions when you have nothing to compare it to.

In a decentralized system the individual actors can see the results of decisions made by other actors and change accordingly. In a centralized system there is no other 'center' to compare it against. They could be making good decisions or they could possibly be not.

In the real-world the amount of unknown variables is so high that even decisions made with the best intentions, most rational approach, and most perfect knowledge possible can fail miserably. It wouldn't be the fault of the central planners, per say, but it will still be a negative outcome.

Also a decentralized system the consequences to negative decisions is dampened. Even if the bad decision was done out of perfect rationality there is enough irrational actors that somebody else will likely stumble across a superior decision and thus guide a more positive outcome. A bad decision by a individual actor will potentially be devastating to that actor, but the effects of that decision will be limited to that actor and those around him that may be negatively impacted.. it won't impact the entire group and his example will lead to better decision making in the near future.

With centralized planning the bad decisions affect the entire group and it can take much much longer for the bad decision to be recognized as bad and even longer to change. By that time you can fix the problem have the group adjusted to work around the bad decisions and undoing the bad will just create new issues.