I imagine it as a means to create multilevel, hierarchical social structure that rewards human work.

This statement "pulls the chain" of a many a Steemer and other cryto-nerds. The watchword in crypto (blockchain etc.) is: Decentralization ; disintermediation via managing systems over peer to peer computer networks. For example, they want to deprecate banks and fiat currencies. You can send a bitcoin to another entity without going through a bank. Bitcoin goes from the wallet of one person to another directly without bankers interfering.