I agree that capitalism has improved, which is to say that in the best cases, it's become wedded to "socialism," as in social democracies. Whether the resulting hybrids are called "capitalism" or something else is only a question of labels.

Still, there may be an artificial fear of giving up the core of capitalism. We can argue, as you say, that the barrier isn't psychological but material because "capitalism works." But that opens up the empirical questions of whether capitalism works for the majority, and of what end it works toward? What kind of species must we be to sustain the precious phenomenon of personhood in the long run? It's possible that insisting on the freedom to own private property is self-destructive, collectively speaking. But we blind ourselves to capitalism's immense downside, with myopic cultures.

I'm not saying we should reject capitalism, mind you, but only that that system might be supported, in part, by cultural distractions and confusions.