The world in the context of Quran doesn't refer to the good things in the physical world which are for us to appreciate God's favor inwardly as well.With all respect, I don't go in for this "spirit good, matter bad; heaven good, world bad" kind of thing. For all the suffering this world has, it has its beauty, its love, its meaning, whether it is listening to birds sing in the early morning, or looking into the eyes of a newborn, or a hero rescuing a child from a burning building. "God saw all that he had made, and it was very good." Genesis 1:31
It refers to if we make Satan really our direction instead of God. Satan takes over a soul through trickery. The world that is condemned is the deception and goal we live for if we live for other than God.
It's the identity we take on instead of truly recognizing ourselves from God and his Guide and Witness.
Let me quote a hadith:
This world is like a body whose head is pride, whose eyes are avarice, whose ears are greed, whose tongue is dissimulation, whose hand is desire, whose legs are vanity, whose heart is heedlessness, whose being is annihilation, and whose product is extinction.
It brings pride to whoever loves it, avarice to whoever prefers it, greed to whoever seeks it, and cloaks with hypocrisy whoever praises it. It gives vain power over whoever desires it; it leads to heedlessness in the person who relies on it. It seduces whoever admires its goods, but those goods do not last for him. It returns the person who gathers it and is miserly with it to its own abode, which is the Fire.
The source: Misbahal Shariah from Imam Jaffar (a).