This seems an odd polarization between quantity of goods and quality. A laptop is smaller than a desktop computer, yet often costs more and therefore counts as more "growth" in traditional measures. So the production of a laptop is both a quantitative increase in growth and (I believe) an improvement in quality.
Ipods get more expensive as they get smaller, so that's a drop in total square inches of "stuff" but a qualitative and quantitative gain in growth.
And the push for growth in the world doesn't just come from capitalism but from both desires of people for many of these new goods (I personally like my IPod and laptop and don't think that's about consumer fetishism) and from the more dramatic needs of the world's poor who actually could use some basic quantitative expansion of various goods.
Obviously, the form of the planning to get that growth could be and should be improved, but the idea that socialism gets us completely out of problems of democratic demands for growth seems unconvincing. I suppose "growth" can be redefined as all its purely negative aspects, but that seems not particularly useful.
Nathan Newman