Believe it or not, people have thought about these things. Mining wasn't chosen because the developers love destroying the environment, but because it's the only way to bootstrap the system and keep it going.

It's a system to distribute scarce tokens as fairly as possible. At the beginning, you could just do it on your own computer device. Now the space is much more specialized, the barriers to entry is much higher, but anyone can still participate.

> issue more value to those already holding more value

Again, how should the initial units be distributed fairly? Besides, this system is not attractive to latecomers and will end even more centralized that the current system.

> Issue more value to those holding less value.

So I just create free new identities out to get the scarce tokens? Then the tokens are not that scarce, are they?

> Issue more value in the form of credit transactions within the community.

Not sure what you even mean here.

> Imagine if you will that only 1 bitcoin was ever issued.

A Bitcoin already is divisible into 100 million Satoshis. Mining is a solution to the question who gets the tokens.