Yes the carrying capacity has increased, if you exclude global warming, deforestation, salination, reduced fish stocks, etc etc. if you take these things into account it is clear that the world would be a better place with a lower population. And I don't mean them - I mean all of us.
A start would be free family planning and contraceptives worldwide. But this would come up against corrupt institutions like the Catholic Church, that believes one more catholic child makes the world a better place even if that child starves to death.
Australia should also reduce immigration, given the environmental issues faced by Australia.