Essentially, the state is a product of class struggle, and is a superstructural reinforcement of the underlying base of society. The state is not a neutral, system-indepentent "state," but specifically a "feudal state," a "capitalist state," a "socialist state." The systems and mechanisms of a capitalist state cannot simply be reformed from within, they depend on and are built to support the actual capitalist system.
Throughout history, major changes in modes of production have come through revolution. Reformist approaches like in Chile with Allende end swiftly in coups, and we are seeing the current struggles in Venezuela due to not having a complete revolution (though the commune movement is still building dual power). It isn't simply a lack of imagination, it's something tested time and time again throughout history.