Yes poverty and living standards have changed. But not everything modern is better - health care? Obviously yes, but food quality? I think it is much lower.
Junk food was never an option for people in the past so I think if we are to directly compare a modern diet with people pre-war, then actually "everything organic" (though not from Waitrose), is more comparable comparing with than modern food made with preservatives, fillers, binders, stored or chilled for months on end, sprayed with pesticides, animals fed with hormones and bred for fast growth, and produced for profit not nutrition or real taste. It is no wonder or coincidence that cheap food does not satisfy hunger.
Of course there were people who went hungry back then (as now), but of those who did have the money to by food, what they received for that money was much higher than Tesco Value or Aldi value. We have allowed the bar for food quality to drop very low and I think this disguises poverty.
Also, I think our housing standards are very low. We hark back to the Victorian 2 up 2 down as a sign of poverty, but so many people nowadays cannot afford even that. Many people live in homes that are little more than a series of boxes stacked on top of each other or side by side and often smaller than the 2 up, 2 down. Many of these homes are damp and mouldy with no access to the outside.
In the past, rural farm workers may have had little money but they had space, and countryside and fresh air, and a garden and could walk to work. It obviously wasn't completely idyllic but there were benefits whereas now, these same rural cottages can only be afforded by the wealthiest and those who have to walk to work because they cannot afford to run a car, are stuck in the boxes with the air pollution and no space to grow any vegetables or keep a chicken.
Except for the example of the additional cost of repeatedly having to buy poor quality shoes, I think we don't give enough emphasis to the quality of what we can buy with our disposable income.