Indeed. It then follows that the optimal arrangement will find a balance, ameliorating the flaws of system each with the strengths of the other.

Several Northern European countries (like the Netherlands, which GP finds congenial) pursue this, though pragmaticism (unlike ideology) never reaches an end-state, and remains a work in progress. The USA, from ~1933 until sometime in the 1970s, operated on this model. It's probably only possible to sustain in high-trust societies.