Becoming more effective in and of itself simply means becoming more productive, which means creating goods and services with less, which means more "welfare" to people
If people are being convinced to buy shit they don't need, that's a separate issue. But don't throw the baby out with the bathwater
In my well balanced life, I love interacting with LLMs. I also appreciate the things I have all of the time, without needing to slowing down technological progress to do so