Our society currently affords ample opportunity to "productively" avoid those questions. You can pour everything into work, watch TV, numb your brain with drugs, or whatever.
Automation does not remove the existential questions, it just removes some of the noise that allows us to ignore them, and elevates them to the forefront.
Some people already have answers to those questions, and stand to gain from that toil being removed. Others have been avoiding the question their entire life, and removing the toil that excuses their avoidance is removing a cornerstone of their identity.
To that extent, I agree that automation is a disintegrative force, because so many people have yet to integrate a personality and identity around answering these foundational questions.
Still, it's long-term-better for our society if automation allows people to access higher forms of self-actualization. In the medium-term, a depressing number of people are content with passing time in their current rung on that ladder, and will be upset with the change.