You and I may be happy with this. But a lot of people will not. People need a sense of purpose; a desire to be needed; to be valuable. Some may find value in free time to pursue artistic endeavors; many will not.
My theory is that actually they will. Currently many people simply don't have the time or the energy to think about fanciful notions of unlimited free time, or what kind of hobby they would like to pursue, because their mental energy is expended on survival needs, and worrying about survival needs.
Once people get above a certain level of having those basic survival needs met, then they have all this mental energy to spare so they can think further into the future, and about fanciful things beyond their immediate situation.
Many young people today, when faced with terrible employment prospects are turning to entrepreneurship and starting their own businesses. If starting your own business is less risky due to the good social safety net, perhaps more people would do it.