You're extrapolating quite a bit, I think. There is a pretty wide range of policy decisions between the status quo and 'kill everyone with some wealth' in terms of dealing with the negative consequences of extreme wealth inequality.

(I do agree that there is a tendency to overestimate just how much wealth is available, though. People often get the idea that if there were no billionaires that everyone would be comfortably well off, and the maths doesn't quite check out on that, though you could probably improve the lives of a lot of people at the lower end of the spectrum. There's also a tendency to over-estimate what being in the 1% of wealth gets you: this is rich, for sure, but it's not 'private jet and luxury yacht' wealth by a long way)