The thing about Marxism and socialism as understood by people who've lived through the Soviet Union or the satellite states is that they've been exposed to just as much propaganda about their states being examples of Socialism and Marxism as the West has. It's just as wrong. They were also exposed to propaganda claiming that the state was democratic, but none of them believe that because they understand the word and know how different it was. But Socialism and Marxism had no pre-existing meaning for many people in Eastern Europe (pre-WW2, communism and socialism were prohibited from being openly preached in Romania, for example, under penalty of jail). They had no idea what these terms were supposed to mean, so they did believe that their states were failed socialist states, instead of realizing that not a single socialist ideal had ever been attempted, at least once Lenin took power.
And so yes, to people like my parents the very word brings to mind images of their experience in the 'Socialist Republic of Romania', and of professors and newspapers trying to sell them on how good it was.
They know far less of the history of socialist worker's unions that fought and won for the right to the 40 hour work week or for the right to strike and protest.
Related to examples of successful socialist states, I can't give any. However, rather than debating the reasons for that, I will say that worker's cooperatives are a proven business model all over the world, so I don't see why it's impossible to imagine a successful economy based on co-ops instead of corporation. After all, at one point there were no successful modern democracies or capitalist states in the world, and the very idea seemed preposterous to many lovers of king and country.
Anyway, I want to say that I have greatly enjoyed this thread of conversation!