The way I see Free Market Capitalism is this: When have you ever had a difficult problem that got better by leaving it the fsck alone?
I think this is the core question. The answer is that these problems happen all the time. For example, there's a large category of perceived problems which aren't actual problems. For example, your claim that power companies don't "add value" when in the next sentence you state exactly the value they provide - power that _everyone_ wants. Since they are actually adding considerable value, the difficult problem of the valueless power companies is easily adverted by not having existed in the first place.
Second, there are the very difficult problems that aren't your problems. I find letting people work their difficult problems out on their own is the best solution here. Among other things, it's an educational experience that allows people to solve other difficult problems they face over the course of their lives.
`Then there's the difficult problem that one makes works by messing with it. For example:
Socialists basically say: Hey, the world is _fsckin'_ complex and it takes real hard work to make things run smoothly, and then a Socialist will start blathering on about all the things you need to do to make a system work.
In other words, the Socialist takes their one tool in the box and whacks on the problem happily. Then when the problem results in more problems (such as your DMV example where the supposed "anti-gov't types" fail to behave according to script), there's more targets to whack on. The top-down strategy common to socialism results in all sorts of problems due to both the ignorance and venality of the policy makers as well as the crude nature of the tools.
There is a standard destructive spiral that socialism gets in. First, they create a public good. Then when the rest of the world behaves in a way as to overconsume the public good, the standard tragedy of the commons phenomenon, then a bureaucracy is set up to regulate the consumption of the public good and starts doing its own thing. Then the cycle repeats, this time with a sliver of the society trapped in this bit of waste. This is exactly a place where relatively free markets excel.
Finally, there is the continued contradiction of growing an ever more complex, opaque, powerful, and unaccountable government while saying "Sure, you have to keep an eye on things". No, you aren't keeping an eye on things. You are growing one of the largest problems of societies, known since we first had civilizations. You don't have to "keep an eye" on markets like you do on bureaucracies, whether government-based or otherwise, who have little stake in doing their job.