The problem is we suck at distributing it. We have a system that allows the super rich (and thus super poor) to exist.
If we could magically create any object we like, the rich/powerful would make sure they had a monopoly on that technology so they could maintain their richness/power. There is a great talk given by G.A Cohen against capitalism that illustrates this point wonderfully[1]
[1] http://www.youtube.com/watch?v=yA9WPQeow9c [Video]
EDIT:
Sorry just saw your strange reference to Newton as well. You are saying technological advancement is more important than people, and we should prioritise advancement over people... why? Why should we advance technology for technologies sake?