I reject the premise that capitalism is currently failing to "deliver the goods." The whole point of capitalism is to destroy companies like GM and Chrysler. The whole point of capitalism is to destroy unions like the UAW that favor older and retired workers at the expense of younger workers and workers yet to come. The whole point of capitalism is to destroy the "smart guys" who create defective financial products. The whole point of capitalism is to punish us for electing a government that enmeshes itself with the jokers above. The "current unpleasantness" is a feature, not a bug.
As Roberts points out, it's not the *whole* point, but it's a significant one. It's a profit *and loss* system; the failures need to fail, not be propped up artificially. Only then can their destruction create something better.