You can some gains this way, but they're limited in a couple of ways:
1. Yes, the resources consumed to make software are smaller, but they're still non-zero and will never be zero. So ultimately you're still limited by finite resources.
2. Many things just can't be implemented in software. I would point to A. Housing and B. Food production as things that are pretty hard to optimise. That isn't to say that we can't optimise them at all. We can build smaller houses or taller buildings. And we can transform energy from fossil fuels into fertiliser that increases yields. But growth in these areas is still very much constrained.
And these things are key human needs.