I agree with you. Household labor IS labor. However in the world where both spouses moved to working for a wage, those 8 hours of housework do not disappear. They still need to get done, they just come from both spouses leisure time now.
It's not 8 hours of housework. Dishwashers, robovacs, laundry machines, and fridges all reduce the house labour load. I don't think people appreciate how much labour reduction has happened. Getting food for the day's meals was a daily thing, now you can go weeks, even months without having to get more food thanks to refrigeration.