> But the moral framing of the issue (recycling/reusing as a "good thing to do", as opposed to an economic opportunity waiting to be tapped) has the perverse effect of negating (in our head) the actual market value of the things we throw away.
The market dynamics are one consideration that affect the moral evaluation of the situation, but there are usually others as well. If there are important aspects that the market, along with existing regulations, haven't fully integrated -- which is usually the case to one degree or another -- then one can make a moral case to not blindly follow the market's incentives alone.
If the incentives are particularly strong, the dicey part may be figuring out when and how when individuals can effectively subvert these systemic incentives or modify the system itself. I don't have clear or concise thoughts on that right now, other than believing it does occur from time to time.
It sounds like part of your argument is that the current moral values around recycling aren't fully reflecting the reality and what people actually care about (which is a larger set of things than the market fully captures). I think there is truth to that.
However, narrowly arguing about the market dynamics alone doesn't seem like the best path to me, given that we know market dynamics have their limitations.