The other error was assuming that envy ever goes away. People compete for status, attention and countless other intangibles even when their physical needs are met.
While all basic physical needs are certainly met in the developed world, it's questionable if most people's (or at least most men's) sexual needs (which could be classified as physical) are fully met.
It's difficult sometimes to shake off the feeling that some status competition is sexual competition that dare not speak its name.
