This whole treatment manages to ignore the entire service sector (which won't go away because of a magical "Machine"). Unless we're also positing robot teachers, doctors, cleaners, masseurs, ... this happily glosses over quite a large portion of what people actually do in the society we have now. Farming and manufacturing are not what they used to be.
It's not a bad thing to think about in general, but it's so far off base that it's a lousy starting point for a thought experiment (or an actual real-world project).