You have not understood what I said. I'm not talking about unappealing features of the idealized version of capitalism that GP is lionizing. I'm talking about how capitalism as described brings about the conditions that undermine free competition, by its nature. You're talking about it as though we can just agree as a society "we're doing free competition now" and that's that. Capitalists won't agree to this -- every incentive leads them to want to restrict competition. And they have too much control for a notional agreement among citizens or whatever to overcome.
Yes I generally agree that the absolute version of "Free markets" as in 0 government (it's very existence is a distortion), is not going to work either, and it will just lead to interested groups using acquired forms of power to create distortions in their own favor.
More so I'd propose a system of government which has baked into its constitution things which remove the power of capital from politics. For example lobbying and non-individual and non limited campaign donations are 2 such things that must be not allowed.