Maybe that is the answer to how things are supposed to work if AI replaces everyone and no one can afford to buy their stuff.

Things being too cheap allows money to pool at the bottom in little people's hands in the forms of things like "their homes" and "their computers" and "their cars".

You don't really want billions in computing hardware (say) being stashed down there in inefficient, illiquid physical form, you want it in a datacentre where it can be leveraged, traded, used as security, etc. If it has to be physically held down there, ideally it should be expensive, leased and have a short lifespan. The higher echelons seem apparently to think they can drive economic activity by cycling money at a higher level amongst themselves rather than looping in actual people.

This exact price jump seems largely like a shock rather then a slow squeeze, but I think seeing some kind of reversal of the unique 20th century "life gets better/cheaper/easier every generation".

I very much disagree that consumers holding more hardware capabilities than they need is a bad thing. Replace computing hardware with mechanical tools, because they are basically tools, and consider if consumers be better off if wrenches and saw blades and machine tools were held more exclusively by business and large corporations. Would corporations use them more often? Probably. And yet it seems pretty clear that it would hurt the capabilities of regular people to not be able to fix things themselves or innovate outside of a corporate owned lab.

To me the #1 most important factor in a maintaining a prosperous and modern society is common access to tools by the masses, and computing hardware is just the latest set of tools.

I think you missed some sarcasm there.

Until I got the last part, I actually thought you were being serious.