Help me understand scarcity
What you are saying is that the marginal utility of one additional good (car, or coconut) decreases and tends to zero. I believe everyone agrees with that.

The reason why scarcity matters is not that people can't be satisfied with a finite consumption, but that most individuals currently consume below their satiation level and would be happier with one additional unit. Most people would prefer a bigger house, a more luxurious car, more clothes, etc., even if they would finally be satisfied with some finite level.

Regarding your observation "Can we really not ramp up production to facilitate this wish?", the answer is no: it is still too costly to produce cars, houses, clothes etc. to accommodate everyone's wishes. If we were able to produce costlessly the amount of goods required to satisfy everyone's satiation level, the problem of scarcity would be solved (and economics would disappear as a science), but we are clearly far from this situation.