The graphic doesn't state coffee as non-essential luxury, but spending $1,000/year on (buying) coffee.

I find it pretty incredible how much money people spend nowadays on buying coffee, instead of brewing coffee themselves, like past generations did.

Technically it is, though for most people the values involved are not an important issue even if they spend $10/day on fancy ones or the equivalent per year on owning and maintaining a fancy machine (and few people will do either).

But yes, as with all optimisation, the main focus should be on the single biggest cost, which in SF is housing: when I briefly considered a career move to SF, the rent was so out of proportion to the rest of the world that “learn to fly and commute by Cessna from Davis” looked relatively sane.

Assuming the machine's lifespan is 5 years (and that's a very short time for an espresso machine) you are looking at 18K over 5 years at 10$/day.

That's high traffic commercial espresso machine (La Marzocco) territory.