There's definitely something to this narrowing of opportunities idea. To frame it in a real bare bones way, it's people that frame the world in simplistic terms and then assume that their framing is the complete picture (because they're super clever of course). Then if they try to address the problem with a "solution", they simply address their abstraction of it and if successful in the market, actually make the abstraction the dominant form of it. However all the things they disregarded are either lost, or still there and undermining their solution.
It's like taking a 3D problem, only seeing in 2D, implementing a 2D solution and then being surprised that it doesn't seem to do what it should, or being confused by all these unexpected effects that are coming from the 3rd dimension.
Your comment about giving more grace also reminds me of work out there from legal scholars who argued that algorithmically implemented law doesn't work because the law itself is designed to have a degree of interpretation and slack to it that rarely translates well to an "if x then y" model.