It was largely used to employ cheap labor to produce crap. The luddites produced higher value artisinal goods.
The luddites weren't reactionaries intent on destroying technology any more than strikers are protesting against the concept of 'work', they were just saboteurs trying to improve their negotiating position.
The whole thing about them being anti-technology is historical revisionism. Similarly, French taxi anti-uber strikers in 2013 were literally depicted by Forbes as being "anti smartphone" - the motive for the lie being the same in both cases.
The reason why low wage employment and crap clothes were more economically successful at the time had more to do with the economically hemorrhaging effect of the Napoleonic wars - which led to cheaper, more desperate labor and a demand for cheaper goods. It's a bit like how McDonalds gets a sales boost during recessions while mid range restaurants take a hit.