It is possible for the best aspects of a people/society to atrophy while they simultaneously expand their wealth/technology/etc.
We can make the world an undeniably better place while also loosing vital things. It's not a zero-sum game. Have we been doing this for 2,500 years? Probably.
It feels like a contradiction only if it's zero sum. But we generate more vital things than we lose, so it feels like (is) progress. But that doesn't mean we're not losing vital things.