I am from Brazil and before the recent soy-growing deforestation of the amazon the #1 cause of deforestation was furniture-making. My parents have a really old dinner table made from high grade wood, is it is a pain in the ass to move and it has a ton of scuffs we can't be bothered to fix. Once my parents move we will probably throw it away. It lasted 40 years (with a big varnish rework around 25 years in) but the trees used to make it will never come back, my ikea table has been with us for around 8 years and still works fine.
Particle board tech has come a long way and it is much better than it used to be, IKEA particle board is consistently "okay" to "great", but other manufacturers it is not guaranteed. The only thing it lacks (by design) is the weight, particle board will be much lighter than "normal wood" furniture, which is both good and bad depending on the situation (some types of furniture you want to be heavy).
A large amount of ikea furniture is not cheap particle board crap. they have a range of materials for all of their products, and even some of the medium end products look nice and hold well.
Additionally, many middle-class families have "back in the day" stories where their houses were filled with bare essentials for which i'm sure an ikea bed frame would feel like an upgrade.
I think the real IKEA problem is global homogeneity (there seems to be a MALM dresser whatever home i'm in around the world), but that doesnt mean we are collectively living with a low standard.
Also with the much larger population today, a small percentage of craftsmen still dwarfs the output of the past.