These are just notes, which I may turn into an essay at a later day. I wanted to jot them down before I forgot.
If food is more nutritious at the same price, people would need to eat less of it and have more with less money.
If entertainment gives a better high at the same price, then people would need less of it and thus spend less out of their budgets for the same level of wellbeing.
So, as it stands, innovation into increasing the value of goods passes itself on to the customer, which makes the populace effectively wealthier, and the currency (and presumably the economy and the society as a whole) stronger.
Bedankt voor het denken.