@geography @havoc
As a baseline: When this kind of stuff comes up I always try and clarify that I hate the way the world works right now and I think we need to cut material production and consumtion by getting rid of profit models and focusing on what benefits people and minimizes (or hopefully benefits) the ecology.
There are for sure physical limits, but alot of the limitations in recycling right now are because they aren't profitable. Assuming we stop new production of petrochemical based plastics, there are other ways of introducing virgin plastics into the mix to keep the final product from degrading, one example might be bioplastics made from plants, where we don't have to use petrochemicals to make things/add into other plastics to keep them in working order.
There is also growing research into new material design projects using mycelium as an alternative to a ton of non renewable objects. So that might open new avenues for material use that have a lower impact environmentally.
In terms of energy, we could shift our energy requirements away from fossil fuels and towards renewable methods that also don't alienate or impact people in the global south like photovoltaic solar panel production might do. (It's the paradox of creating green energy technology that actually requires more extraction and exploitation). So we might use hydroelectric, or passive solar to create heat to drive turbines, or biogas in areas that might not have water or good sun, there are alot of alternatives that we can use to generate energy that might offset our current ways of doing things.
A circular economy might not be 100% circular, but if we can close that gap compared to what we have now, cut consumerism, stop planned obsolescence, and find ways of reusing waste instead of letting it rot, we can get to a better place.