I said that recycling was PART of the solution.
Apart from that, I nearly agree with you. The nearly is that I don't agree that a drop in lifestyle is an essential result of a more energy and waste efficient society.
My latest car does 51mpg (as opposed to about 30 of the first car I owned, and that most certainly didn't have a catalytic converter either), we insulate our houses, engine oil is clean and re-used, we re-use milk bottles, we refurbish aircraft parts, sewage is composted and used as fertiliser instead of being pumped into the sea - we do all of this because it's efficient and saves money, and none of it degrades our quality of life. We "just" need to do such things ever better - and the best way to do that is probably by creating commercial and tax environments where this is the cheapest option.
G