I don't think one cancels out the other. It's not the case in international relations that "naked displays of military and economic might" alone lead to power and influence and access to resources.
Other nations do in fact "Admire our prosperity and value system", America's Marshall Plan and the creative and scientific explosion of American culture in Post-War America has had a global influence and impact, and people in France, England, Germany, and also in Poland and other parts of Eastern Europe, do in fact admire and respect, and were influenced by America. American values like freedom of speech and expression are valued across the world. So many immigrants from India, China, and Iran who i've met always talk about how they feel free to speak their mind in America the way they can't in their own countries.
America's "soft power" is immense and prestigious and ultimately hard power doesn't work without soft power. That's why China is feared more than it is loved. While America is both loved and feared.
American soft power and influence has had some successes. Like the Good Friday agreement that ended the Irish Troubles was made possible by American support. The Marshall Plan was another big success (Nelson Mandela among others has asked for a MP to end poverty worldwide). And American soft power and hard power is the only thing that's gonna protect Taiwan (the only democratic Sinophone nation still standing) from China, now that Hong Kong is lost. It's also the only thing protecting South Korea from NK. Obviously American foreign policy has taken a hard beating because Trump has weakened US power in a way nobody has. W. lowered the prestige but not the actual power and Obama restored that.
Noam Chomsky himself despite opposing the invasion of Iraq did feel that helping the Kurds was a good cause and American withdrawal to basicall throw them to the wolves, at the hands of a neo-Ottoman Turkey and a neo-Tsarist Russia isn't good.