I tend to agree SoJ, that people are caught up in pride, which demonstrably is the first deadly sin. I also think that people have a false understanding of happiness and equate it only with material prosperity. This is another example of the lack of humility. If one is warm and dry (modest home and clothing) and has the basic necessisities to live (decent food), one has all he needs. Unfortunately, a person of this standard of living is judged (in the West, and US especially) to be living in near poverty.
Most people, even those who believe the existence of a literal hell, do not dare think of the real implications of hell. And, if they do, they believe hardly anyone actually winds up there. Anyone who understands what hell is ought to be scared stiff if he had the possibility of going there.
And the posters above are right as well. We hear, if anything, only the very basic cautions about hell in most homilies on the topic. Then it is quickly on to how if we "try" to live a "good" life, God will be merciful.