Regarding the latent demand topic, I don’t think it’s quite demand. It’s just vocalizing that someone else’s kid is cute. They may say they want one but they really don’t, so that’s not demand. It’s no different than seeing a puppy and saying “I want one” in a baby voice. That’s not latent demand. Because most likely they’ve already forgotten about your cute puppy 5 minutes later or when they think through all the inconveniences owning a puppy will introduce to their life, they realize they don’t actually want one bad enough.

I think it’s opportunity cost as well but more specifically in the sense of greed. People are greedy about living their best lives as an individual they don’t want to have to put someone else’s needs above theirs.

In a sense, the long period of wealth and stability the western world has experienced has pushed all of the seven deadly sins to their extremes. I think there’s a reason why these things are commonly labeled as sins and discouraged by most religions, it speaks somewhat of the purpose of religion, and it’s to help humanity function as a society given our natural tendencies are rather destructive. This is the pattern you’ve described, or underlying.