Of course you don't need the things, but they are enjoyable. I like to live a life beyond bare necessities.
Of course I may be wrong here but it sure doesn’t feel like that; I’ve had the blessing to be able to compare my life with a lot of money closely with my life with very little money.
I have also lived having money and not having money. It is way better to have money. Not having to stress about bills, not having to stress about things breaking or needing repair, being able to eat good food when you want... it makes life better. The stresses of figuring out how to get by when you are poor really hamper your ability to enjoy life.
I tend to bounce around from low to high cost of living locations. My mindset changes a lot without it really being under my control.
In a high CoL area the limits to what you want can be truly absurd because there's so much wealth swimming about. It's normal.
It takes some grounding, but also interaction with a community that accepts you for who you are, to temper that.