I think theism constructed a particular form of hell, in the form of a permanent self or soul, which could be saved or damned, thus producing great anxiety for some people. I suppose it became secularized, and Freud ironically claimed that his goal was ordinary human unhappiness.
Your last point reminds me of people in Zen who said that Zen practitioners just had a different kind of egotism, but it was still there. Certainly spiritual leaders have a bad track record in terms of embezzlement, fraud, sexual abuse, and so on. I greatly admired a guy from California who taught Zen, and then it turned out he was a serial shagger, of his friends' wives.
To quote another favourite 'if I'd never seen such riches, I could live with being poor.' And that works reversed 'if I'd never seen such poverty,I could live with being rich'.
I like the idea of ordinary human unhappiness, that's the aim of medication for depression. They are anti_depressants not happy pills. Perhaps though this is all my own distrust of extremes, and the feeling that they are either covers for the alternative extreme, or a mere switchable extreme.
Less is not more, but perhaps only little things can be really important.