If people "choose" to work rather than "need" to work, then only some of them would CHOOSE to work. The other would prefer to enjoy the luxury life and become unemployed.
Yeah, probably. So?
And because it is a choice without reward, then the competitive environment would vanish.
There is a reward, just not material one. There is acclaim and appreciation of the society, the exitement and feeling of accomplishement.
To me this doesn't seem like a hard thing to crasp. Material rewards have been all of the human history just one of the many motivations for doing things.