You're just using different words to describe socialism, which I frankly don't think needs any further arguments against it besides pointing at it's attempted implementations.
No, that's not socialism. Socialism is "a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole" (from dictionary.com). dbingham is proposing something different - vesting the ownership and control of enterprises in the workers at those enterprises, not in society as a whole.
I think the closest to this, in current practice, is the German model, where workers have at least a say in the direction of their enterprises (not sure about ownership). It seems to be working out really well for them.
I can't give you a specific example. The kind of thing I was talking about is called a "work council" (or, let's see if I can get German in here without mangling it, "Betriebsräte").
It is, technically, a form of Democratic Socialism - you could also call it Free Market Socialism, but it hasn't been tried anywhere. Only state socialism has been tried.
