> People have been trading off sleep deprivation for productivity for all of human history.
I disagree, I believe what we mean when we say "productivity" these days was invented maybe during industrialization, maybe 1800s, and a couple etymology dictionaries I checked seem to agree, that the word being used in an economic sense to mean "production per unit" only started occurring in the 1890s. Also, I believe that the modern sense, meaning, "whether a human's time is spent being productive for the economy," is a mid to late 20th century invention of neoliberalism.
I don't really like hyper-generalizations like "all people have been doing this thing for all of human history," because it's just a silly thing to say on the face of it - the English were doing very different things and had very difference concerns in the year 800, 1100, 1700, 1900, and 2025! But also, the English in 1300 were doing very different things than the indigenous Americans in 1300! That said, one generalization I'm comfortable with is that throughout all of human history, until maybe the 1940s, people have been seeking comfort, leisure, and peace, and only recently have we developed a global society, and at that one that is obsessed with finding economic justifications for everything, including how humans spend their time!
You mention, "it isn't always a choice," and I agree, that is the failure of capitalism - there are people out there destroying their lives, minds, and bodies to scrape out a living. Our global economic system has failed these people - in fact it's sacrificed them on the alter of consumerism.
Many a child had stunted development from mothers and fathers subscribing to the cult of capitalism and overworking themselves and never being at home, with the self-serving justification of "I'm making a better life for my child," when in fact they're not.