You're absolutely right about de-materialization, but just on this point, migration to cities is probably about over (excluding suburbs, which will probably grow). Most people who aren't in dense areas are happy outside them, because the fact is a very large number of people don't like living in urban areas (those who do are grossly over-represented on this web site.) [0]
[0]: https://www.washingtonpost.com/business/2018/12/18/americans...
I don't think we're guaranteed a future where we can rely on globally sourced cheap products materials and labor.
Not making any predictions about that, though. Just saying that if globalization wasn't a thing, cities would be more important.
I think you're mistaken about the inclinations of the average person. People like having a decent amount of living space. I don't think most would want to give up a back yard.
There's absolutely no way of knowing this, and, quite frankly, the argument that most people are happy outside of them pales in the face of the post-pandemic economy and how that will materially affect suburbanites.
The wheels of history are in motion, so not one of us really knows anything.