While I'd love to blame an economic system for this, I feel the truth is more mundane: consumers are oblivious to what they are purchasing and are content to pay high prices for bad service.
What difference does it make? Saying capitalism doesn't work because consumers are ignorant is no different than saying socialism doesn't work because people are greedy. Yeah, it'd be great if we could change behavior to make these systems work as intended, but that's not really an option. If the system doesn't work, it doesn't work, period. The reasons don't much matter unless you have a solution to match them.