The ideas behind capitalism aren't inherently wrong. The basic idea of incentivizing the creation of increasingly-efficient or successful systems through profit has been the genesis of much of the modern world. Capitalism only descends into villainy once it stops efficiently conquering difficulties in engineering or supply and instead attacks 'difficulties' in legislation or the reward system. The issue isn't that capitalism is bad, it's that capitalism shouldn't mix with policy. Ever.
I see you arguing that those who collect profit are those who do the creating, and I raise you “labor is the source of all social wealth and capitalists exploit the working class’s labor to collect profit”. There is no ethical way to conduct capitalism free of exploitation – those who own the workplaces and resources get their profits off the backs of workers, who have nothing meaningful to sell in this market economy but their labor. You can argue that maybe a competitive market economy and a profit incentive laid the groundwork for many of the tech innovations we have today, but first you have to demonstrate that the capitalist class structure was necessary as well; and it wasn’t necessary, considering the fact that worker-managed co-ops still compete for profit but don’t have the internal class structure that creates massive wealth and power inequality. (And that inequality makes it all the easier for “capitalism and policy to mix”.) In other words, mutualism would have been a *far* more humanitarian market system with the qualities you’re describing, without the major drawbacks of capitalism.
(It’s all kind of a moot point now anyway, because we now have the technology to liberate people from the grand majority of toil and poverty. Just automate everything that you can, democratize it, and distribute goods according to human need rather than on the basis of profits for a select few. Seriously, capitalism is far more autocratic and centralized than you learn about in the political science textbooks, and it’ll take a system with a far more decentralized power structure (socialism, or even mutualism) to remedy the wealth inequality, the wars, the climate change, and the widespread alienation.)