I think we're worse off from the standpoint of financial independence and ability to grow wealth, yes. Ability to pay for things like education and health care, yes.

I think the reason this isn't more obvious is that technology has improved so rapidly that for just a few thousand dollars... maybe 5% of the average household's income, we can buy really fantastic technology products compared to previous generations. So these gadgets are helping to partially compensate for the loss of so much real wealth.

Even top-10% software engineers making $300k total compensation are really just achieving what I'd consider "normal slightly-upper middle class financial comfort". Ability to buy a modest home near their work, afford to have children and send them to college, etc.