As for automation, I completely disagree - we automate where we can get the biggest gain on output. So if something costs a lot or has high social benefit we should automate it as much as possible so that it can provide more benefits to more people.
We could argue about the extent to which these nonfinancial competitive forces influence (or ought to influence) the market, but saying that they "simply cannot" seems false.
That's not generally my observation of the world. No-skill-required jobs pay less, skill-required jobs pay more. There's a slight bonus for dangerous jobs, but not a heap, relatively speaking. Pleasure derived or not only appears to have an effect on income levels outside of traditional employment and into freelancing territory, for example with starving artists and writers.