There is nothing inherent in industrial production that prevents it from being accommodated to a full (or even over-full) world.

Agreed.  Nor is there anything inherent in industrial production that prevents it from accommodating a resource scarce world.  Recycling and technological substitution will go a long way.  But, again, this will require a reset of profit expectations, as much of the low hanging fruit has been consumed and the products of industrial production will likely be relatively more expensive.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."