Glander,
I agree with you. Certainly, disincentives to gainful employment are deplorable for a society. Earlier a poster provided a fascinating graph of "wage cliffs" in another thread. I had never heard of this structure that creates such a massive disincentive to reach for higher wages. If true, it is madness.
So, there is a point at which tax and services creates societies where the Government takes care of all and productivity is terrible (Communism). Then there are societies where tax and services creates societies where productivity is high (much of Europe). Then there are societies where taxes are confusing and productivity is still very high (United States).
Your reflection on the tragedy of the Native Americans is apt. People criticize them as a race but they are only living the way most white welfare families I know live. It is a terrible thing to remove a person's impulse to be productive. However, that is, for me anyway, not a corollary for not providing assistance to those unable to be productive. I'm sure you will agree.
I suppose the question is of degrees and grays. With some people these recent changes are going too far.... just as the left felt the Bush tax cuts went too far the other way.