I also think the "idea creating matter" part of your argument is a misrepresentation of the theory. It's more of a shift in human history through the evolution of ideas. It's a more philosophical approach to change. For example, the very idea of Marxism is an antithesis to the idea of capitalism. The dialectical theory is basically saying that at some point, these two ideas will be resolved and form a new thesis.

Actually, this is a misrepresentation of Marxism. Marxism is about Dialectical and Historical Materialism, it isn't a Utopian answer to Capitalism but an analysis of Capitalism and a Materialist prediction of what will replace it. I recommend reading Elementary Principles of Philosophy by Georges Politzer. Capitalism contains within it the seeds of Socialism.

This is my understanding of this theory. Of course, I'm no expert, and i still have a lot to learn, but i don't think it can be easily dismissed. Unless you know something I don't.

Without being condescending, unless you've read several books on Dialectical and Historical Materialism, as well as Idealism as it has evolved over time, I believe I probably do know more. The Politzer book is fantastic, it goes over the evolution of Idealism, Materialism, Dialectics, and ends in Dialectical and Historical Materialism.

My main point is that societal evolution isn't as easy as economics and politics. It's more than that. I only offered the dialectical approach as an example. There are many other theories out there that might explain society in conjunction with the conflict theory.

Marxists argue that societal evolition is based on economic and political evolition, dialectically.