Nobody “decided” that. The transition to a service economy is an inevitable progression whenever a nation’s standard of living rises ... just as the transition from an agrarian to an industrial economy was.
I think you are correct.
What happens next is that wages rise for some less productive workers beyond what an employer has to pay for overseas workers. Those jobs get lost forever to foreign economies whose workers enjoy a lower standard of living.
As the rest of the world progresses, we will lose the ability to support a "service economy". We pump our own gas, mow our own lawns, wash our own cars, etc.
Eventually the shake out must arrive and those who were being overpaid will have to make an adjustment. Government "entitlements", such as extended unemployment, can only be afforded so long before the productive go broke trying to provide such entitlements.