Randroids are not the only people who recognize property rights.
[T]he recognition of private property has really harmed Individualism, and obscured it, by confusing a man with what he possesses.
This is silly. If that were the case, Paris Hilton would be well respected; instead she's nearly universally despised. In societies that do recognize private property, we don't simply confuse a person with the things he or she posses. Things like intellect, creativity, and character are still important. As are, for that matter, many superficial things!
We might as well say a society that recognizes free speech confuses a person with the things he says. Or that a society that recognizes freedom of political affiliation confuses the man for his affiliation. These things, along with one's wealth, help comprise the the person, but not exclusively. Other things matter.
Yes the property that a person holds affects the image we have of him or her, but this likely occurred in societies that had no property rights at all. The hunter with the sharpest spears and tools, and best fur clothing was likely looked at differently too.
The rest of the quotation is fine for encouraging people to strive for non-materialistic goals. But these goals can still be attained in a society that recognizes private property. An elimination of private property is neither necessary nor sufficient for attaining such goals. That it is not necessary is made evident by the creative, scientific, and humanitarian works that have emerged in free economies. That it is not sufficient is made evident by all the individuals that have not achieved anything at all in communistic countries.
ANDUnless you add some kind of explanation or commentary, don't post long quotes. That is annoying!