While you make an interesting academic point, the REALITY is that our quality of life is already going down from over population. I have to commute 1+ hours each way, when the drive should take no more than .5 hours under ideal condition. Yes, I live in the DC area. And even here, in the National Capital Region, we are flush with illegals. Just drop by the nearest 7/11 or school. Even at the VA DMZ, where they are supposed to be checking for ID, the place is full of foreigners (sporting that tell tale backwards baseball cap). I can't image that all those people are here legally. At some point you also wonder if they will being the ills of their home countries with them. Certainly, the Muslims are doing this.
My point is that if you have LESS people to serve, you NEED fewer people to serve them. But, I think you quality of life will go up. I don't want to have to spend 2 hours each way to work in my car, just so some developer can make $10M this year instead of $7M. Of course, I accept that current trends likely won't change in my lifetime. I expect more of the same--including ever longer commutes. (:<