The capture the state part seems to be spot on. You just need to take a look at how much lobbying goes on and our inability to deal with issues like climate change thanks to the big oil companies.
They can apply large pressure on the state, true. But so can labour unions (and probably so would guilds). It is still not true state ownership as competition does thrive (even if they still have obstacles).
Edit:
There are probably even better examples of lobbying than climate change as that has a ton of confounding factors that make it hard to deal with besides just oil companies. But I see no reason to assume distributism would make the issue better. Taxi drivers protesting against Uber comes to mind.
Edit: There are probably even better examples of lobbying than climate change as that has a ton of confounding factors that make it hard to deal with besides just oil companies. But I see no reason to assume distributism would make the issue better. Taxi drivers protesting against Uber comes to mind.