So I'd say part of this is the increasing bifurcation of society - the death of the middle class, if you will. There are still lots of very nice things, otherwise Beacon Hill and Back Bay mansions wouldn't exist. Nor would Newbury Street and it's broad selection of renowned luxury brands, art galleries and the like - for the folks that can afford them.
At the same time, the working class, middle class members of society feel like they're getting left behind - wage stagnation, increasing costs of living and housing, means that members of this demographic can't justify those luxury purchases, nor their middle range counterparts. Part of this is the march upmarket of lower tier brands, part of this is the focus on value your typical (by numbers) consumer now has.
Let's talk in terms of watches and department stores, shall we? The rich always were, and still can, walk into a boutique and purchase the new Omega they've been eying. The middle class used to be able to go to a Macy's and justify a nice Seiko or Bulova, maybe as a anniversary gift. The working poor, if they needed a watch, would pick up the cheap digital Timex at Target or Walmart. But the middle class in Boston might as well now be the working poor, when the comfortable income range is 300k+.
Now everyone who isn't the rich and still has disposable income is either shopping at a TJX or Target, discount stores that are now "upscale" and in that space the "Upper Middle" basically ceases to exist. You can see this in which department stores have survived, and which have failed or are failing. Nordstrom, Saks Fifth, Neiman Marcus, Bloomingdales are all doing reasonably well - but even they get volumes out of their Saks Off, Nordstrom Rack etc brands. On the lower end Dollar General, Walmart, Costco ... All doing great. Who isn't? Those stores who used to rely on the middle market - your big names that everyone knows because everyone used to be part of it. JC Penney, Sears, Macy's, and yes, Lord & Taylor.
Part of it is that they got squeezed by both ends of the market. Luxury went down market with the boom of outlets and the "rack/off" model. Mass market went upscale with nicer product, eliminating the competitive niche where "upper middle" used to exist. In other terms Mercedes started to make 40k CLAs, and Toyota started to make 60k Camrys. Where then, does the upscale 50k Buick go?
That said, I do think we all appreciate nice things in the public realm. No one has ever said the McKim Building is far too nice for a public building. Almost everyone has said that Boston City Hall is a terrible public building. We want new trains, freshly paved roads. Most folks would love to be able to afford an apartment in the city and those nice things being sold at Copley place - the reality just is most can't anymore. Disney is no longer a realistic middle class vacation for many, nor is living in Boston. Those who still are don't want to be pushed out, so your average folks don't want your neighborhood bar to be torn down for a luxury condo building you can't afford a soda in. When we're not asked to pay for entry, nice is nice.