For the sake of the argument, let's say that was actually the case. This would still be a demonstrably better situation. Under private ownership of capital, the purpose of work is to produce profit for the business owners with any social value produced being strictly incidental. Meanwhile, with state owned enterprise the purpose of work is to produce socially valuable things that the workers themselves directly benefit from. The wealth is not hoarded by the state, but it's rather reinvested in socially useful ways such as building infrastructure, providing healthcare, education, and so on.