Neo-Luddism is less stupid when you remember that the Luddites weren't angry that looms existed. Smashing looms was their tactic, not their goal.

Parliament had made a law phasing in the introduction of automated looms; specifically so that existing weavers were first on the list to get one. Britain's oligarchy completely ignored this and bought or built looms anyway; and because Parliament is part of that oligarchy, the law effectively turned into "weavers get looms last". That's why they were smashing looms - to bring the oligarchy back to the negotiating table.

The oligarchy responded the way all violent thugs do: killing their detractors and lying about their motives.