I have a vague theory that China's massive home market of poorer people keeps the innovation going. There's always an upside for making something 1% cheaper and simpler as more people can buy it.
That gets mocked by rich people in rich countries in the short term but then leads to disruptive innovation from below, cheaper, simpler items growing and eating the market.
I think you are on to something. In the US I feel the focus is more and more on catering to the maybe top 20% who can afford to pay a lot more for things. There are less and less low end cars. Concerts and sports events are super expensive. New apartments are usually in the higher price range. No starter homes anymore. Instead of innovating, we just increase the price of assets.
That gets mocked by rich people in rich countries in the short term but then leads to disruptive innovation from below, cheaper, simpler items growing and eating the market.