I don't care how good your economy is, you aren't paying everyone well. Someone, somewhere is getting shafted. Of course if that's somone outside your country, that's OK. But someone gets exploited.
So you've got lots of goverment created jobs... Hmmm burecratic goodness, which are going to be work creation pure and simple. Things that don't need doing, but get done to give people jobs. There are only so many roads you can build and so on. This gets pricey very quickly, especially if its a 'good' wage.
The problem with divine right was "Why the hell does that guy run the country just because he was born to it?" So there are nobles helping? Wonderful! "Why does that bunch of guys run the country, just because they're born to it?"
Your counter argument is wrong, the second easiest way to become a saint is to be martyred. People have regularly killed saint like people. So unless none of the Icarans have any free will or independent thought they will resist goverment brain washing. Which is what they seem to do, raise 'em to believe this and nothing else.
Finally if your main aim is the community then just because someones the head, doesn't mean killing them wouldn't be good. If you say 'Everyone's subject to laws, except the boss' that's just going to piss people off more.
An unelected hereditary quasi-religious absolute and un-questionable leader. Possibly the worst sort of goverment I can imagine.
