There's a bunch of ways to allocate resources but ideas like money have an advantage of allowing people to choose how they live.

A good example would be that not every person would be satisfied living in an apartment in the city. Some prefer living more rural for any number of reasons. Some want to be inside playing video games and others outside biking on a mountain. Some want to be able to do both. Giving them the ability to choose small apartment in the city or bigger house in the woods is important for happiness.

The biggest issue is the discrepancy of resource allocation between individuals not the method that allocation is done on paper.