I agree with your points. Yes, the current generation of displaced workers will be in trouble and yes if the changes are quick the result won't be pretty (re: illegal means of survival). Despite this history also shows that the long run is likely to go the way I proposed(?). I guess the real difference is that my approach is too macro.

Edit: Also, what about the opposite force? You can't displace workers and expect them to still consume as they did before. So regardless of how good technology gets I find it hard to reason that it should displace people at apocalyptic rate. If you put these workers in too tough of a position too quickly, they won't buy the very products they used to make. So entire industries themselves are restrained - otherwise everyone loses, including the industries that would supposedly gain. Sorry if I worded this poorly.