I think in the philosophy literature it’s generally interpreted as independent of resource constraints. A quick scan of the linked SEP article seems to confirm this. Apart from the question of what Parfit said, it makes a lot of sense to consider the questions of “what is good” and “what is feasible” separately. And people find the claim that sufficiently many barely-good lives are better than fewer happy lives plenty repugnant even if it has no direct implications for population policy. (In my opinion this is largely because a life barely worth living is better than they imagine.)
I think in the philosophy literature it’s generally interpreted as independent of resource constraints. A quick scan of the linked SEP article seems to confirm this. Apart from the question of what Parfit said, it makes a lot of sense to consider the questions of “what is good” and “what is feasible” separately. And people find the claim that sufficiently many barely-good lives are better than fewer happy lives plenty repugnant even if it has no direct implications for population policy. (In my opinion this is largely because a life barely worth living is better than they imagine.)