As far as rent goes, we pay rent now it’s called property taxes. No one really owns their land since if you don’t pay your property taxes the government will seize your land. In addition even if you do pay your taxes if they think they have a better use for it, private or public they will eminent domain the land. However land is not the true source of wealth and power anymore, capital is. No tax is paid on liquid capital and although theoretically taxes are supposed to be paid when it is acquired when it comes to the 1% it is not paid.
The real problem I have with your argument is that it ignores the power of existing entrenched capital. It will do everything within it’s massive power to preserve and perpetuate it’s self. The idea that it would ever allow a gradual transfer of it’s capital (power) to the public realm is naive. The only way the corrupt, unjust and destructive power of these centers of wealth can be eliminated will be through the forced confiscation of what are in fact “ill gotten gains”. Of course that means a revolution and all the unpleasantness that entails. It is human nature to hope for the best and count on the “masters of the universe” to come to their senses before things get even worse. Hoping for the best, after all, is what keeps us going day to in the face of life’s adversities. It is also not realistic or rational. The 1% will never give up their power peacefully.