Yes, more of this money is going, instead of middle-class workers, straight to the capital class who own the "machines" that do the work people used to do. Except instead of it being a factory that makes industrial machines owned by some wealthy industrialist, the machines are things like Google and AWS and the owners are the small number of people with significant stock holdings.
It's really striking though that a person graduating high school in say, 1970, could easily pick from a number of career choices even without doing college or even learning an in-demand trade, like plumbing, welding, etc. Factory work still existed and had a natural career progression that wasn't basically minimum wage, and the same went for retail. Sure, McDonalds burger flippers didn't expect then to own the restaurant in 10 years, but you could take lots of retail or clerical jobs, advance through hard work and support a family on those wages. Those are the days that are super gone and I totally agree with you both that something has changed for the worse for everyone who's not already wealthy.