And what happens if a person's worldview goes against the dominant ideology of that time period? "Cancellation" in that proposed world means that a person could potentially lose everything the moment they step out of line.

Perhaps not immediately concerning because one would imagine that they won't be going against the grain, but leaving so much power in the hands of a vague unknown is extremely dangerous.

A potential argument against this could be that if you're kicked out of this system, you can just buy the physical items that you'd need to continue to live. But would that be feasible? Would companies continue to produce consumer-grade equipment if a great majority of people are happy to own nothing? And even if consumer-grade equipment existed, it would be far too expensive to suddenly have to buy everything.

After enough generations pass, it won't even matter if they can purchase this equipment because they'll be far too thoroughly dependent on this system.

Some points to consider at the very least.