Yes, I agree that throwing all possessions isn't the best of ideas. What I was trying to suggest was that just craving for more possessions just for its own sake is avoidable. For example, if you are happy with 5 year old car, why take a new one?
I agree with that, however you have to consider the returns on investment, too: the difference between a personal car and public transport is that you can get to wherever you want in 15 minutes instead of 1 hour, for example, but if you have a 5 year old car that works fine, there's no reason to buy a new one, indeed.
It's even more complicated in software - while a lot of tools are good enough as they are (like Windows 98 :-)), upgrading to a new version can make a huge difference.
I do agree that having a lot of possessions is harder on your mind, and it ties you down to one place - I found that out when I had to move and leave a lot of stuff behind - in the end, it turns out I could live perfectly fine without it.
Of course it depends from person to person, but in many cases the advantages gained by upgrading are marginal. If you don't do serious photography, your 5MP phone camera may be more than enough for you. If you all you do is Microsoft Word and Internet, Windows 98 may be sufficient for you. Of course, if something you absolutely need (not desire) requires an upgrade, you have to do it.
Enjoy advantages of modern technology but don't get too obsessed for its own sake or because others are doing it -- there are far more important things to do in life.
For instance, having a car to drive your 5 year old kid to school can be a lot less stressful than taking a bus or train.
But, yes, seeking to own the best car money can buy is rather unnecessary.
Overall this article offers simple, good advice. It was a good read.