A system that can’t tolerate occasional coasting is a system that can’t tolerate creative bursts. The trick is detecting “I secretly lost hope but my stream of income is very comfortable” when paying a costly salary; which would be mitigated somewhat by switching the tenure benefit of either pay enough to afford, or outright gift of, a single-family home (looks pointedly at Stanford) to a variation of residence halls, where the salary gift can be much less in exchange for benefits due creativity: reserved whiteboards, option for neighboring private rooms (table/bed/bath/shower) and research office, a couple of quiet floors, 120/240 and ether/fiber in every room, presentation rooms with ‘lives next door’ IT support, etc.

Hell, I’d take that IT job. Keeping projectors working for a bunch of impatient creative types in exchange for getting to listen in on their presentations and earn their confidence enough to discuss their research as an interested peer while I repair their computers? Eating good food in a mess hall as I listen to quantum physics in one ear and mathematical networks in the other?! Onto the dream jobs list it goes, impossible as it might be in today’s academia.

We shouldn't really seek to punish "slacking off" though. Because when the opposite of valuable contribution isn't slacking off it becomes unintentional sabotage. It's a lot less noticeable in jobs that don't have immediate consequences for poor performance, but it really stands out in jobs where it immediately matters like construction. In a lot of cases everyone is getting paid the same but talent stands out and some people work 5x faster, but at thing they are good at. If you aren't the guy that lays 10x tiles perfectly flat and straight per minute then just bring the materials, set out a couple tiles and wait around. You will literally see this play out on most construction projects as it looks like 10 people are standing around while 1 person works, but that's because everyone tends to recognize that it's better to do what you are best at or just don't do anything. And the foreman will tell you that too, when all the dirt has to be moved, the shovel guys are just as important as the guy that can separate two nickels with an excavator.

In the end we have to face that systems have failed to replace competent managers. If there isn't a chain of accountability starting at the top that can manage people without extensive justification in metrics and is properly incentivised to keep the organisation healthy, whatever we are left with will be gamed to the detriment of everyone.

The certainly don't teach you that in business school :)