I think we may very well be on the precipice of the world you imagine, or something like it. But the old world dies hard and takes effort to abolish. We didn't get where we are because we were given what we have - we fought for it. I think we're seeing the beginning stages of people demanding that the benefits of AI and automation flow to them, rather than to just the elite. Won't be without pain, but I think we get there. Partly because we kind of have to. People get over their fear of socialism and collectivism really fast when they get desperate yet there's people making huge piles of money off the automation that stole their job. I can't say for sure what the future looks like, but I don't think we stay locked here forever. To think so is to look at the situation during the first gilded age and say nothing can change. Well, it did and we got the progressive age.

The frustrating part is that we could be on the precipice of an amazing time.

Either the collapse of civilization or a literal uprising.

We could be in a space where it makes sense to dump tons of resources into rapidly progressing automation because it would enable people to finally stop doing tedious labor.

I dont think this is true.

Space mining is only for resources to use in space. The economics of transporting resources back to earth will never stack up.

I dont think any significant number of humans will spend any amount of time in space in any practical time scale.

I mean we passed that point decades ago, im not an expert but im pretty sure it's literally been decades since we produced enough food for everyone on the planet to be obese and at least in the US I believe we have more empty houses than individual homeless people. AI overinvestment is another step in the wrong direction but it's not the cause of any of our current problems.

I don't think this is quite how the world works. The reason people need to work to survive is because we can't survive if everyone stopped working. We have to make people work under threat of homelessness because if we didn't there is too great a risk they wouldn't work at all and that would eventually mean the collapse of society. How many people would quit their job tomorrow if they won the lottery? Sure some would find work doing something they preferred, but not all of them, and often the thing they prefer doing is not the job that actually needs doing the most. If it's something they even are good at. Loads of people would love to be an actor, but how many actually have both the talent and the skills needed to do that?

In a society where most people actually don't need to work because most work can be handled by machines without significant negative consequences things would change to be very different. People like to think rich people or politicians or kings control the world by themselves but the reality is there are always limits on what they can actually do. If you dick around too much even in an absolute monarchy you will be overthrown one way or another. Typically by your own military, underlings, or family, sometimes by revolution or insurrection. The same thing applies today to liberal democracy. In fact it applies even more so. Anyone who tried to kill off the working class as a whole would find themselves very quickly dead or dethroned one way or another.