There has never been an economy like the latter, and it's a tragic failure of human imagination to believe that it isn't possible.
Sure, there are genuine inefficiencies like the laryngeal nerve but there also are plenty of apparently useless things that turn out to have some niche importance such as the appendix.
But we don't usually think about it that way. Most people who advocate for a planned economy don't want that kind of planning; they think it's bad to innovate in things like how jobs are structured, bad have a single large company in charge of most of your shipping, and bad that Jeff Bezos can build such a good company that his stake in it is worth billions. Planned economy advocates that I see generally want the economy to work how they specifically would prefer, without much regard for whether other people think that's the best way.