Optimization per se isn't the problem, much like thinking isn't (and arguably one is quite likely synonymous to the other at a fundamental level). The problem is with what you optimize for, and how hard.

So most companies aren't optimizing for a goal of "maximize our pockets AND maximize world happiness AND maximize the value our users get from us" with a proviso to not optimize too hard, so that unknown but desirable values that aren't expressed in the goal function don't get optimized away. No, they just optimize for "maximize our pockets", and do it hard. And when they do it like this, any sense of ethics or dignity is one of the first to fly out of the window.

Similarly, the optimization being "poison to yourself" is not as much a danger of optimization per se - wanting to improve yourself is a useful and noble desire! The problems usually start when you focus on a narrow goal too hard, to the exclusion of everything else in your life.

As for the market and how things are: my belief is that we're in a tipping point where the market, as an optimizer, is getting out of control and needs to be reined in. It's worth remembering that the main force behind market optimization is competition - I'll find a new trick to undercut you, you'll find a new trick to undercut me further, etc. until we reach diminishing returns, and the price of goods/services settles at barely above costs. Here are things I strongly believe to be true (and rather self-evident) about competition:

1) In a competitive environment, once one party figures out a trick that gives them advantage, everyone else has to do the same or risk getting outcompeted.

2) You don't have to compete only on production efficiency - you can also compete on quality (in the direction of getting away with lower quality for the same, or slightly lower, price), on business models, on ethics (any ethical principle you can skirt will open up new avenues for free profit), on advertising, on adherence to laws, etc.

So over the past centuries, the market had a lot of low-hanging fruits to pick. New materials, new processes, economies of scale, innovations in transport - all allowed to provide better goods for less. But now, I believe, we've run out of these easy wins - most competition happens on the grounds of lowering quality, business models (Everything as a Service, DRM, razor-and-blades, etc.), ethics (see e.g. social media companies), advertising (better RoI than making marginally better product), legality (Ubers and AirBnBs of the world running on a "break laws, and use VC money to keep regulators at bay until the market is cornered and competitors are destroyed").

The market is no longer optimizing us for giving us best possible goods at lowest possible price. Instead, it gives us worst sellable crap at highest possible price, by tacking on hidden and indirect costs.

That's why I'm increasingly in favor of regulating some business models out of existence - particularly the ad-subsidized everything, razor-and-blades everything, and "move fast and break laws" ones. The market's role in society is to make our lives better. The market has optimized past that. So the easy and socially destructive tricks need to be cut off, so that the market can return to optimizing for betterment of consumers.