Luddite is someone who is opposed to new technology, which doesn't apply here as the sentiment isn't about being opposed to the new tech but about the new tech not being taken advantage of.
The software we build today is "vastly" more powerful in the sense that, strictly speaking, you can do more stuff, but it is way less powerful - and often broken - than what it could be, considering what you can see being possible on older hardware and what seems to be done in modern hardware.
Also it isn't really something that happens today, here is a nice (and funny) talk from Joe Armstrong on the topic from almost 8 years ago[0]. Though this sort of sentiment goes way back, e.g. Wirth's classic "Plea for lean software" article from 1995[1].
(Joe's talk is more about the broken part and IMO he misidentifies the issue being about trying to make things fast when the real issue -that he also mentions- is that pretty much nobody knows what is really going on with the system itself)
[0] https://www.youtube.com/watch?v=lKXe3HUG2l4
[1] https://cr.yp.to/bib/1995/wirth.pdf