IMHO, capitalism is taking your *capital* and using it to create profit. Period. All the other stuff that people are upset about has nothing to do with capitalism, and everything to do with corruption.
Your reference to an imaginary world implies that you think I'm some kind of libertarian absolutist. Nothing could be further from the truth. In fact, I've tussled with those guys quite a bit too.
I fully recognize and uphold the role of government in furthering the aims of justice, fairness, upholding the law for the common good, etc.
How do I reconcile this with capitalism? Easy. If I polluted an entire river to make money, that should be illegal. If I polluted an entire river just for the lulz, that should be illegal. If I polluted an entire river because I thought God told me to do it, that should be illegal.
To me, the polluted river does not imply that capitalism, lulz, or religion should be overthrown. Quite the opposite. If we go down that road, we're going to hell.
It's the corruption that's wrong, not the capitalism.
The libertarian makes the fundamental mistake of wanting to destroy government entirely due to corruption. Others make the mistake of wanting to overthrow capitalism due to corruption. They're both, IMHO, making the same sort of "tossing out the baby with the bathwater" mistake.