True, but replicators run on energy. So do transporters, environmental systems, and self care items like sonic showers. You have to get energy from somewhere. Also, you need to be able to pay someone to fix your replicator, transporter (assuming it didn't splatter you across the cosmos), or shower. Not to mention things like child care, dog walking, party planning, or other service industries.
Whit energy again, the implication is that Earth/The Federation found found safe, cheap/free sources of energy.
With child care, dog walking, party planning and other services...well remember Joseph Sisko's restaurant. Once again the implication here is that there's people who just love cooking for people, walking dogs or looking after children.
It might not make all that much sense, but that's the explanation the shows tended to go with.
With more menial kinds of work....honestly I always though Star Trek should address this by having heaps of non-humanoid robots buzzing around doing all the work humans don't want to do.
For my own headcanon I once described it like this in another thread, when it comes to clothes:
Clothes from replicators are free, you can use your replicator, or go to the local "mall" replicator any time you want to replicate as many shirts, pants and ballgowns as you wish.
However, just as with replicated food, replicated clothes are seen as "inferior" to handmade clothes (imagine the difference between an artifically created diamond and the real thing)
So there's people who create clothes which you can buy and sell for "Credits" (like the ones Dr. Crusher mentions in Farpoint) and so it is with everything else a person produces by themselves.
There's no more chain stores and a non-replicated dress, sown together from replicated fabric is probably a luxury item.
And going along those lines, a hand-made dress made from non-replicated fabric is probably something extremely expensive that people could only afford once a lifetime, since there would not be much cotton or wool production going on anymore. And non-replicated silk or leather are most likely unobtainable.