That is exactly as I said, decoupling certain aspects from the market. In effect you are socializing some portion of the market. I don't mean that as an epithet either, just a defining term. I also don't disagree that something like it should happen.
if it was, we wouldn't need to worry so much about how we distribute resources.
Ah, actually that's not true at all and is a foundation of this debate. If an individual had a machine that created infinite bread for free the person, under the current market, could restrict access and distribution all they like. I think in practice this (not the bread thing) is what will happen with certain goods where marginal costs go to zero.