The Federation has apparently renounced materialism
First let me say that is one of the most concise postings I've ever read.
I do think you get into a difficulty when you say that "The Federation," an organization with a population of upward of a trillion people and (with colonies) over a thousand inhabitable worlds, as apparently having done this, or really anything cultural as a collective group. The Vulcans as a group have embraced emotional control, but we see little sign that the Federation as a whole have copied them.
That one of the Federation's millions of societies may have renounced materialism, or that a certain idealogical group spread thinly across the Federation has turned their backs on materialism would be more reasonable.
Did James Kirk really need a large beautiful house for just himself and a female companion? On a piece of property big enought that no neighbors could be easily seen?
And that stolen warp driven yacht at the beginning of Way to Eden must have belong to someone.
The degree that the member people within the Federation engage in materialism likely runs the spectrum from basically non-existent through to all consuming purpose of life. Even Picard has that non-replicated first edition of Shakespearean plays in his ready room.
And apparently Ambassador Fox had the power to send Scotty to a penal colony, with no mention of trial or court-martial.
Yeah, that was terrible when Scotty was gone to prison for all those years.
I believe the point Marsden, is that Fox should not have been able to credibly make the claim at all
. Some government flunky shouldn't, on their personal say so, send a Starfleet officer into the prison system. Or even be able to make the threat, regardless if it wasn't carried out.