In my experience, it also grounds us and gives us useful feedback loops with what we can really control, and what really matters to us, the most.
Which is super important.
In my opinion, a lot of the crazier things going on in the world are due to a lot of people not being well connected or healthy with those things, and being susceptible to manipulation by outside forces looking to harness that angst.
The digital era has propelled us further into the "hyperreality" that Jean Baudrillard wrote and warned us about. [1] You descend into pure madness the moment both feet leave the ground and you give in to it.
Our children are living in it, it will be all their children have ever known.
Living small is about keeping one foot firmly planet in the desert of the real.
Plenty of joy to be had even if you choose to disconnect from the nonsense around you.
Something about Buddhism and suffering in there as well.