I should have been more clear about this. I read the full article, and if I though that "But the overall standard of living will be raised unilaterally for all individuals" was a sufficient answer to my issues with PG's piece, I wouldn't have written a reply!
I think there's tremendous value in preventing our society from dividing into two spheres so far away from each other that merit-based mobility is practically nonexistent - a world of "haves" and "have-nots." Because if you do split society that way, then even if the "have-nots" are arguably at a higher standard of living than today's working class, they're still not in a place where they can contribute innovative ideas to the cutting edge of technology - which requires the "luxurious" education that the "haves" have. And I'm arguing on the basis that it's short-sighted to dismiss the innovative ideas that could arise from the "have-nots."