Sounds pretty ideal. I am not political scientist, nor do I think political scientist can have solid prediction about success of a macro political system at this level of a abstraction – it is simply too complex of a system.

I feel from the past experiment regarding socialism, there seems to be a conflict between large state and large state serving the will of the people. Power corrupt: for a social democracy to be functional, I believe needs to have (at least the following) two characteristic:

1. Most people should not have to feel the worry for the lack of resources. Thus, wealth display will naturally be unnesscary, if not frowned upon. Eliminating the culture of admiring people with excessive assets.
2. A strong democratic system that discourages the consolidation of power under a couple oligarchs.