perhaps you can point me to examples of soft, fluffy Marxist countries which are thriving in the fields of human rights and economics ...
Perhaps you can point me to an example of a Marxist country? I haven't seen one.
Stalin's totalitarian regime was an extension of Leninism, which in turn was an adaptation from Marx (of course Stalin's Marxism-Leninism used Marxist's ideas as propaganda to justify his totalitarian rule as the means to achieve socialism). Specifically, Marx himself did not advocate for a dictatorship by totalitarian former working class people (while the real working-class had no say), Rather during the transition between capitalism to communism the whole working-class would participate in a government that resembles something like a direct democracy (far from what we think of as dictatorship, but it would result in the oppression of the capitalists). He called this idea the "dictatorship of the proletariats". Of course, this is not what happened in Russia when Stalin self-imposed a single party police state, so you can't say Russia is an example of a Marxist country. Same goes for North Korea and China.
Now I'm not saying the Marx is right in all of his ideas (neither am I fully aware of all of them -- this subject gets really complex if you start digging into it and his writing style is not easy to read). Additionally, there are other adaptations of Marxism other than the Marxism-Lennism flavor (e.g. Libertarian Marxism). And since most people equate Marxism with Socialism, I should point out that socialism does not equate to marxism either (even though here in the US most people equate Marx, Socialism, Communism, and central planning, as all one and the same). Thus, I also recommend looking into Libertarian Socialism and Participatory Economics for other perspectives.
Lastly, according to Chomsky, it was not just the capitalist countries that were opposed to socialism but also the Soviet State as well. The result is that we are left with a situation where many people view socialism as a bad thing and this prevents us from eventually achieving "a more decent society and a liveable world in the West" and elsewhere.
In short, I don't think this is a simple black and white thing where we can say capitalism == good and socialism == bad.