“Where there is mind, there is always solution,” Keneenk taught. All problems contained the elements of their answer. - David Brin

I thought they were very good at what they did.
Of course they were good! Brill glanced sharply. The issue is what one chooses to be good at. The arts are fine, for hobbies. I play six instruments, myself. But they pose no great challenge to a mature mind.

How can we set up a system which encourages individuals to strive and excel, and yet which shows some compassion to the weak, and weeds out madmen and tyrants?

Clearly, in this world, you were a fool to count on beneficence from above.