The Authority of the Gemara and Changes in Custom and Halacha

Mishnah Kiddushin, Chapter 4, Mishnah 12: If a man unites with his mother and his daughter, and sleeps with them in close proximity in the flesh; and if they have grown up – this one sleeps in her clothing, and this one sleeps in his clothing.
Rabbi Yoni Gutman (dafyomi20.co.il) in his lesson on Kiddushin, page 1, minute 5, 12:50/25:30, said: "And in parentheses, we will state the obvious thing that the mishna is talking about the old world, and if you know of a man or woman today who sleeps in close proximity to their children, it is obligatory to immediately report it to the police."
Kiddushin 5:2: "They increased this, he slept in his covering, etc." And how much did Rav Ada bar Rav Azza say? Rav Assi said, "A baby girl nine years and one day old, a baby boy twelve years and one day old, and Ikha said, "A baby girl twelve years and one day old, a baby boy thirteen years and one day old."
With the Industrial Revolution about 200 years ago, with the development of weaving machines, the prices of fabrics and clothing dropped dramatically. People no longer sleep naked.
In my opinion, it is a change in moral norms as a result of changes in technology and culture.
Despite this, the Aruch Shulchan, written about 150 years ago, reiterates the law of the Gemara (Yod, end of section 21).
What does the rabbi think?