When people mention the Luddites, they almost always do so incorrectly as you have here. Luddites weren't afraid of technology because it was better than them. In fact, it was worse. There was no projection. The phenomenon you're describing here was not a Luddite phenomenon. They were concerned about how machines would disrupt employment, wages, product quality, work autonomy, power imbalances, and working conditions. We should be, too.
It's also more nuanced than you seem to think. Having the work we do be replaced by machines has significant implications about human purpose, identity, and how we fit into our societies. It isn't so much a fear of being replaced or made redundant by machines specifically; it's about who we are, what we do, and what that means for other human beings. How do I belong? How do I make my community a better place? How do I build wealth for the people I love?
Who cares how good the machine is. Humans want to be good at things because it's rewarding and—up until very recently—was a uniquely human capability that allowed us to build civilization itself. When machines take that away, what's left? What should we be good at when a skill may be irrelevant today or in a decade or who knows when?
Someone with a software brain might immediately think "This is simply another abstraction; use the abstraction to build wealth just as you used other skills and abilities to do so before", and sure... That's what people will try to do, just as we have over the last several hundred years as new technologies have emerged. But these most recent technologies, and the ones on the horizon, seem to threaten a loss of autonomy and a kind of wealth disparity we've never seen before. The race to amass compute and manufacturing capacity among billionaires is a uniquely concerning threat to virtually everyone, in my opinion.
We should remember the Luddites differently, read some history, and reconsider our next steps and how we engage with and regulate autonomous systems.
