Not only should we not try because we can't win on economic grounds (I think). It'll probably force the people that must compete into inhumane working conditions for negligent compensation before we admit that we lost. Banning automation is also not ethical. Because increased efficiency also indirectly translates into increased quality of life, and directly translates into better health care and lower mortality rates.
You're probably right about the basic income, though I wish we could skip that part. My personal crystal boll says that we'll end up with a system more aching to that in the star trek universe anyway. Where _things_ are free, instead of giving people free money.