Sure, really: as long as it is voluntary and not controlled by the state and other coercive mechanisms.
This is not to say that a wage system,for instance, is immoral. It is not condemned in the Scriptures, which assumes wages, and demands just wages.
The Prophets of Israel, the Gospels, and the Fathers of the Church all condemn luxury, and, for that matter, covetousness and usury; which would certainly cut the legs off of modern captialism, powered as it is by advertising and consumer credit.
A free society which respects private property (which Day also supported) will also respect a diversity which makes room for distributism, communitarianism and even monasticism. Freedom would mean you can go and come with that, as you judge best.
No,they did not condemn luxury in toto.
They only condemned luxury enjoyed at the expense of the poor. There are times in the Bible when God himself blesses beyond the essentials (condemned in the statement by Day).
Of course the Scripture assumes wages. To labor for a wage is moral. Eradication of a wage system is not Christ-centered but Marxist. To advocate a system where there would be no wage for labor is to advocate injustice which God abhors. And, no, Day doesn't says this would be voluntary. And only in utopian thinking (the thinking of anarchists) would one consider that it ever could be.