These scales use energy usage as the measure of progress which you are saying is proof that reducing energy use is reducing progress.
I'd love for individuals to set their own limit, ideally one that pushes them a bit to step out of the endless chase for comfort and convenience that we're all stuck in. I definitely don't want a centrally planned and enforced limit though, that's never going to achieve the goals people would actually want.
Our current use of electricity per capita, at least in the west, is ridiculously unsustainable if we aren't willing to keep abusing fossil fuels as an efficient store and source of energy.
I'm a for reducing our impact, but we have to stop kidding ourselves with the pipe dream that we just need the right source of energy to be able to grow our energy use per capita indefinitely.
It can equally be argued that efficiency of use of power is a bellwether of societal advancement, since wasting it will always be easier than making efficient use of it.
Case in point, few people realize that humanity reached 1.9 on the Kardashev/Sagan scale (EG, we output more power than the entire Trappist star that exoplanet enthusiasts have been so excited to colonize) for 39 brief nanoseconds on October 30, 1961. But that certainly didn't make us an entire Kardashev rung more civilized for the same brief moment as we erased another huge portion of our natural environment.