That may be how the terms are used in the real world, but that's not how they are used in the game. In Stellaris, collectism =/= socialism (or communism).
In the game, 'individualist' is about equality, the rights of the individual etc, In an individualist society, someone can advance through merit, so it makes sense that selected lineages would be valued, but at the same time it would upset people that some members of society get an unfair advantage.
Collectivist societies (in the game) are more accepting of inequality, but at the same time selected lineages would be less beneficial - the elites don't need the boost, as their position is already secure, while the rest simply wouldn't have access to the technology.
I didn't mean that all collectivism is socialism, nor communism. I meant that in the terms of Ethos socialism and communism would have collectivism as one of their describing ethos options among others. Or do you disagree on this point?
In my opinion Individualist and Collectivist societies would accept incentives for selected lineages for the good of the society, but Fanatic Individualists and Fanatic Collectivists wouldn't as it would give and unfair advantage to certain individuals or promote them above others.
Individuals still believe that there should be a community or as it put in the Ethos description: "
Community is a means to an end, not the end itself. Only by empowering the individual to reach their maximum potential do we achieve true freedom. Freedom of thought, of speech, of movement, of trade."
In my opinion Fanatic Individualism and Fanatic Collectivism are as far from Individualism and Collectivism as the latter are from neutrality. Or Fanatic Individualism and Fanatic Collectivism are both as from neutrality as Individuality and Collectivism are from each other. Remember that neither Fanatic Ethos can be an Oligarchy while the non-Fanatic Ethoses can be Oligarchies. This is why I like the Ethos system a lot since it allows degrees of fanaticism vs non-fanatism.
What I would do about the policies purely from a fluff stand point would be:
Selected Lineages:
"Careful reproductive planning should be incentivized, lest we waste valuable genetic legacies."
-5% Happiness if Fanatic Individualist or Fanatic Collectivist
Since in my opinion if the planning is merely incentivized and not forced and done to benefit the society then Individualists and Collectivists wouldn't probably have a problem with it.
Capacity Boosters:
"We leave nothing to chance, no matter the cost. Through exacting curation of DNA banks do we build the leaders of tomorrow."
-5% Happiness if Individualist or Collectivist
-10% Happiness if Fanatic Individualist or Fanatic Collectivist
On the other hand with Capacity Booster I'd think that even Individuallists and Collectivists would have a problem since the orders on with whom one is allowed to reproduce start coming from the goverment for the good of the goverment.