Also, just because economists haven't found a bright line between concepts doesn't mean they aren't distinct. I think there's a distinct difference between needing food, and wanting an xbox.
In fact, we didn't even really 'need' food at all: what we needed were a few nutrients, maybe in the form of a pill. Food is a luxury, and if our stomachs disagree we can always get stomach-ectomies.
Until, of course, you find that one guy who defines the point of his existence to be the very first guy to get a billion points in Halo: a person might be in a hospital, dying anyway, and while eating may prolong his life another month, he will consider his whole existence to be a waste if you take away his Xbox; at this point the concept of objective needs totally disappears, and you end up back in the land of "differently elastic demand curves".