So, I think more individualistic societies will over time out compete more collectivist ones, ending at what I consider the most individualistic, ancap.
So I think the fallacy is when you assume that individualism will reach some kind of escape velocity. This sounds a lot like the Soviet Man. It's just another "substitute for Jesus".
Most people when they taste freedom (which I think more individualism would be more freedom) they crave more of it. (E.g. people liberated from oppressive regimes)
Agree it sounds like Soviet man. Not sure it needs to reach an escape velocity and then everything is a peaceful utopia, likely more of a gradual trend toward freedom and individualism