[Dove]

I think that will happen to the extent that people want it to. It's happening now, in fact, with things like semi-retirement and freelancing and professional (but not rich) bloggers/web comic authors and so forth on the rise. You can live a very frugal lifestyle and have a lot of free time if you want.

Most people seem to be choosing to spend productivity gains on "more stuff" rather than "more time". And that is certainly their prerogative. :) I mean, with so many people working so productively for so many hours, there is a lot of cool stuff available nowadays.