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Idk, I'd say we want quality goods, and are lead to believe that these desires can be fulfilled by the lofty luxury goods market which is founded more on artificial scarcity than material scarcity. Even when rare materials and expensive labour are involved the fact that this simply makes them "more valuable" seems more important than any actual need, or lack of alternatives. Meanwhile, affordable products get enshittified, shorter lifespans, etc.

though it's questionable when the cycle of just investing the newfound labor capacity into more luxuries will stop, if ever

Which is precisely why "post-scarcity" can only be reached with actual societal change, not just technological advancement.