The opposite of income inequality isn’t income equality. It’s less inequality and more integration. My wife grew up in small town Iowa. There were rich people (doctors and some farmers) and poor people, but everyone’s kids went to the same school (there was only one), went to the same cornfield parties (apparently a real thing), etc. The millionaire farmers still worked for a living—they weren’t making passive income.
That's still income inequality, though, when you boil it down to the numbers as we are here. I completely agree that it is what is desirable, and would like people to talk more about wealth inequality rather than income inequality, but that doesn't seem to be happening.
I grew up in a town with a high per capita income, but fairly low inequality. There were a few tiny religious and Montessori schools, but pretty much everyone's kids went to the public schools. Home prices probably varied by a factor of 10 or 20; there were both crappy old duplexes and McMansions, but no genuine slums or palaces with car elevators. No one commuted by helicopter. The richest and poorest had shared interests.
