Capitalism is equal and fair, provided sales are transparent. This is where government regulation can help. Weights and Measures. Clearly defined products. Legal recourse for breaches of contracts. The government fails when it trys to regulate or manipulate prices. Or trys to ban products, regulate what can and can't be sold, and when it prevents failed business models from suffering their well deserved fates.
This is what I meant by an edge definition. There isn't a purely capitalistic country on Earth, and probably never has been one for any significant period of time. On the other hand, pretty much every country on Earth has some flavor of socialistic policy, stretching back a very long time. Capitalism by this definition is a myth, and as much a utopian ideal as Communism.
Probably because when societies don't ban dangerous products, misleading or harmful and exploitative practices, things go bad pretty quickly, and people force their governments to protect them (as is their right, and as is the function of government). Personally, and I really don't want to get into it, I think that any economic theory is perfectly fine, until the second it hurts the only thing that matters, people. People are more important than commerce and capital. People need commerce, obviously, but it can go bad. Government exists to keep it within bounds, providing maximal benefit and minimal harm. Where these bounds exist are debatable, and these definitions vary from culture to culture, and time to time. There isn't one true definition, rule, or set of standards.
But actually we're just having a semantics fight now... Your thinking of economic philosophies (laissez faire, in particular, it seems), which generally are political philosophies as well. You'll find there are several competing economic philosophies. All them them have about as much force as the various competing political philosophies, meaning not much. They are all utopian, and sound very nice as a philosophy, but don't take into account that the world is a messy, chaotic thing with more factors than anyone can ever truly foresee.