Of course. The majority of us who are capitalists, but are not crony capitalists. Me. Probably you.
all software and hardware is regulated in one form or another through things like the Invention Secrecy Act
False. That's simply and clearly false. None of the software I've written -- that you know about -- is regulated by the federal government. I've used software libraries that are so regulated, of course. But none of my software is so regulated.
(And I presume you're not talking about copyright law, because that is a different thing, and I've written public domain software anyway, which would not be under those regulations.)
Open source is a bit player
Shrug. It's relied on in almost every business and government agency in the world that uses computers in some way.
open markets are the key to long term success
Capitalism includes open markets. In addition, it has the added benefit of civil rights, which open markets don't necessarily have.
Capitalism is great, but we are now seeing what inevitably happens as it matures.
False. We are seeing what inevitably happens when you have two additional factors: 1. government allows itself to be bought, and 2. people lie about the causes of the problems as being from "capitalism."
Problem 1 is easily solved, if we're willing: make the scope of government much smaller. A government that is not allowed to create ObamaCare will not be the target of health insurance companies looking for handouts, for example. Every single person who was in favor of ObamaCare, or the SCOTUS decision on ObamaCare, is a cheerleader for crony capitalism, because that is what the decision equates to: government can force us to buy any product it wants to, as long as they call it a tax, for the benefit of crony capitalists.
Of course, the left is always pushing crony capitalism. That's their main trade. Whether it's tax breaks for electric cars, taxes on alcohol ... Democrats do this literally all the time. It's why they exist in Congress. Republicans do it too -- in particular, tax breaks for large companies to locate here or there, subsidies for agriculture in important voting states, that sort of thing, which Democrats do too -- but Democrats do it all the time.
It will eventually close the market to all but its most exclusive club, as designed.
Then it wouldn't be capitalism, so your argument is self-refuting. Crony capitalism itself isn't actual capitalism, for that matter, because where government controls the markets, it's not capitalism, because capitalism is private control. Of course, this isn't black-and-white, but shades of grey: you could say that certain antitrust laws, laws about fraud, and so on can happily coexist with a capitalism system.
But a system, like health insurance today, where government explicitly restricts who can enter the market, mandates who must buy the products, sets up most of the rules for the market, mandates what services must and must not be provided within a certain low and high price point ... this is not capitalism, or anything seriously like it. It's anti-capitalistic.