> This is capitalism's biggest flaw: it's based on the assumption that there will be competition

The fact that governments allow Microsoft to abuse its position to force OEMs to install Windows is the biggest problem. This would never happen in a market where regulation ensures healthy competition.

That version of capitalism sailed 40 years ago in the USA, antitrust enforcement has slowly disappeared which creates a race to the bottom for other countries who would like their companies to compete against USA's companies. If they enforce antitrust then the behemoths created in the USA by absorbing competitors without antitrust enforcement can eat their lunch, even though it's better for consumers.

Unfortunately this also allowed the USA to have companies so large that they basically control the government, changing this now will require massive political will and a political body untethered from corporate interests. I really don't see that happening in the USA, it's been thoroughly captured after so many years driving on that path.

Yes, the neo-liberal economy we've ended up with has drifted quite far from well-regulated Capitalism. I'd still argue that we owe a lot of our rights to hard-fought socialist policy though.