I'll answer you last question first because I think it's the source of confusion. My intent was to say that despite the Edo period of Japan being feudal, Europeans documenting the period were surprised to find that people were surprisingly happy in their poverty. I wasn't intending to say that feudalism contributed positively. I suppose it's an interesting question now that I think about it, but I don't really know the answer.

I think you are right that many of the things that are admired about the Edo period has to do with what's called "mottainai" in Japanese. In English you might say "Waste not want not". However there is more to it than that.

One of the things you might consider is that it is more efficient to use new cloth than old cloth -- because the industry is geared towards it. As you say, you can scale the industry towards making lots of new clothes cheaply. If you make clothes from old clothes, then it is not cheap. You need someone to do it. Similarly, if you recycle old cotton for new futons, it's a labour intensive process.

Maybe one day we'll have robots to do all of those things, but the attractive part of the idea is that it is a craft. It is precisely because it is not efficient that it is desirable. It provides a job. And it is more expensive. And people have less money and so there is less growth. But people have meaningful jobs doing crafts that they care about. So, is it actually less growth? It really depends on how we measure growth.

My cupboards are currently full of dishes I hate. I mean, it's really true. I bought them at the 100 yen store when I moved back to Japan most recently because they were place holders for when I had time to buy something I liked. But, actually, I think this was a mistake. I should have bought things I liked and done without if I couldn't find something. A bowl will last a lifetime. It will last several lifetimes. Why are we making bowls over and over and over again? Why are we not making bowls to make up for the extra population and then basically having people trade up to nicer bowls. Nobody I know has nice bowls. And yet if I go to the "recycle" shops (used goods which are mostly filled with stuff that they picked up from estate sales), I can get truly wonderful pieces for nearly the same price as the junk I got at the 100 yen store. How is that possible? Because we're optimising our processes for the wrong kind of growth (IMHO).

I often buy canned coffee (because I'm a lazy sod). I can't help but think what the process is. I want coffee. What's the first thing I need? Aluminium. Because I'm going to smelt me a can. And the can costs about 10 cents of the $1.20 that the coffee costs me (my friend actually engineers the machines that make the cans -- I asked him). So it costs "nothing". But isn't that kind of crazy? Why am I creating a can for such a transitory experience? And don't get me wrong -- the can is a thing of beauty. In the Edo period, I bet you could trade one for a house! But... I don't really need it. And this can, that is a problem for me when I can't throw it out accounts for just under 10% of the economic growth that happens when I drink the coffee. But I don't need it. I'm just lazy.

Sorry... thinking off the top of my head :-)