"Libertarianism and extreme capitalism" are great for people who are intelligent and driven. There's nothing wrong with the idea of trying to identify people like that and giving them money and leaving them alone. Actually there's something progressive about it: instead of forcing people to climb a corporate/academic hierarchy before they can make decisions, you're letting them do what they like in their intellectual prime.

That doesn't mean we should apply this way of thinking to everyone. Most people are of average intelligence and drive. Some people need assistance.

It's good for people that want to rationalize their extreme wealth as "meritocracy" when it's inherently luck of the draw that any of us find ourselves where we are. A real libertarian society entails an informal economy and is what the developing world is trying to get out of. State policy is needed to maintain some kind of social order, a libertarian government is the complete inverse of a command and control economy - both are social disasters.

Maybe extreme wealth is mostly luck, but meritocracy has merit. We all want the best when we're hiring, but want to be treated like the best when we're getting hired.

Discounting merit too much would just mess the balance between the two parties and break the process. Who would hire a person unfit to do the job? Who would spend years learning just to be treated equally to someone who didn't invest as much?