Like, if we all settled for a 1950s British living standard, using current manufacturing technology, we could achieve that while everyone works a little bit less.
But, we'd prefer to keep labouring and have nicer things.
And your theoretical implies we have choice in the matter. I'm sure many would in fact take a smaller home with less amenities over a modern home with cheap appliances. Not that I'd actually be given that choice given my family lineage, but the general living standard of the 50's was quite high. I doubt the act of AC and the lack of knowledge of abestos are the things that made housing skyrocket over the decades.