You raise an interesting and valid point. As technology increases the amount of time it takes to produce a certain effect goes down though. This means people need to work less. It's not that visible to most though because the definition of surviving has gone from not being eaten by a tiger and not knowing when your next meal will be to having a large screen TV with 5000 channels, air conditioning, and free food. If we have the same expectations in the future in terms of standard of living then we will do fine and people won't need to work as much. But people don't really compare themselves in terms of absolutes, they compare themselves to their neighbors. So yes, they will not be satisfied, but I believe they will still be better off than before in absolute terms.
>the definition of surviving has gone from not being eaten by a tiger and not knowing when your next meal will be to having a large screen TV with 5000 channels, air conditioning, and free food.
It really hasn't. I don't know anyone my age (24-ish) who considers air conditioning or cable TV to be surviving. They're considered luxuries. Food is a necessity, but most of us, you know, pay for it.