You talk as if markets and the state are separable. They’re not. They’re two sides of the same coin. Market power is political power.

And removing the private ownership of the means of production is a decentralization of state “and market” power, as decisions are put in the hands of a greater number of people rather than a few.

Specialization can be useful, and even necessary, but the division of labor isn’t necessary. Labor involves planning and decision phase and an execution phase. Capital decides when, how, and to what end social resources are deployed. Labor executes capital’s will. That is the division of labor. Specialization, on the other hand, is fine.