I think when people describe 'the ideal way to live financially' they are looking at the problem as though they have to solve it all in one go, all at once. That's overwhelming, often leads to a sort of, yo-yo pattern of extreme frugality and extreme luxury.
Frugal living are habits that accumulate gradually, as are any other habits one aims to develop. Eventually you don't have to think about them, things converge naturally. Some people might enjoy working two jobs, because everything syncs together that way.
Periods that are more frugal help you appreciate the pleasures of higher-end lifestyles while realizing that not having them isn't a catastrophe.
Plus the hedonic treadmill is a bitch. Someone earlier in this thread regretted his parents not having experienced certain things. Truly, it's a crying shame to die without having had truly fancy delicious dinners, for example -- that one time is almost priceless. But once a month is a nice, expensive habit. Twice a week you don't care anymore.
I think it's only bad when you don't feel like you have any control over it, and you feel more like it controls you. There's the long term goal you want, but the lack of having control leads to extremes, all of these things increase the number of variable you feel compelled to reason about, to control. With finances, food, 'stuff', that can lead to overload, stress, hence, oscillating between opposites, lacking self control, self direction, autonomy, etc. These are all things people need to feel secure and stable when they have to operate as mostly independent entities.
Frugal living are habits that accumulate gradually, as are any other habits one aims to develop. Eventually you don't have to think about them, things converge naturally. Some people might enjoy working two jobs, because everything syncs together that way.