John,
I haven't had the time yet to read the essay on capitalism, but I hope that soon I can read it.
Earlier you mentioned that the main fallacy of communism was the reliance on conformity. I think another failure of communism is that it does not allow personal possessions. Precisely because of that people alienated from the system: nothing is theirs. At least that is how I see it. Marx proposed this as a solution to the problem of the contrast between the "haves" and the "have-nots". On paper it looked good, but he didn't account for the emotions (feelings) of people.
Best regards,
Marcoen