Its like Hillary walking into a working class kitchen for the first time.
They’ve been shielded from even critical support of China and other AES for so long they literally, not figuratively, literally cannot process that people exist that have beliefs that aren’t Reddit Approved. They immediately assume it’s bots or wumao. Human beings can’t possibly hold these beliefs, so they must be Oriental hordes or actual robots.
It’s nice, maybe even incredible beyond a certain income level. Those below that level get glimpses of that reality when they drive past the nicer parts of town or see people with nice cars/houses/boats etc. Couple that experience with brainwashing that anyone can get there with sufficient hard work, and that this supposed mobility is the foundation of Freedom™ goshdarnit, then it is simple for many people to accept mediocre or bad living conditions. It is what makes capitalist exploitation so sinister: it converts direct, personal exploitation of past societies into indirect, impersonal exploitation based on the abstract logic of private property. (Das Kapital in a nutshell.)
All of that is to say, I think your point #1 is insufficient without a Marxist analysis, because merely identifying problems without understanding their causes can easily lead a liberal to fascist scapegoating of marginalized groups instead of actual solutions.