[jjoonathan]

The community creates the value but the land owners capture the value. This is just exclusively to the degree these are the same groups of people, invested to the same degree. While the scenario you describe could conceivably play out, so too could the opposite scenario, where the value is created by people who did not get in on the ground floor of the land ownership scheme but is captured by the people who did. In that case it would be the land owners who are the bandits.

In a world of increasing inequality and specialization, the latter scenario is going to be increasingly common. For many people, it is already here: the absentee slumlord who charges a king's ransom and can't be bothered to keep the toilets flushing is a staple of high-value locations. This person clearly isn't creating the value that drives people to put up with these circumstances, but by virtue of owning the correct deed they get to capture the value even as they do their best to unravel it.