You'd think that people would realize by now that material wealth (we've long since surpassed basic needs) does not bring happiness.

This has been proven false for most people - money does literally buy happiness for the majority of people: https://www.pnas.org/doi/10.1073/pnas.2016976118

There is a minority of people where higher amounts of money does not buy more happiness, usually in connection with emotional pain or struggle: https://www.pnas.org/doi/10.1073/pnas.2208661120