But what about other aspects of our lives that are less crucial to survival? A corner restaurant or pub. A theater or something in the hospitality sector. If the essentials of life are free or at least cheap, would it really be a problem if some of these kinds of establishments engage in some market activity?

It shouldn’t be. I discussed issues of this type a bit here. Being an anticommercial anti-authoritarian, my goal is not to abolish the market, but to obviate it.