Survivors bias. People in Russia or China don't appear to complain about their systems because... they can't.
I think the flaw is human nature. All governments and organizations are corrupt. All implementations are always twisted to suit the greed of individuals.
It's entirely possible to create policy and enforcement mechanisms that would mitigate or eliminate excessive greed but nobody with anything votes for it because they'll lose out on their own personal greed by their measure. They want that chance to fleece the masses even if they aren't in the club that's already doing it.
Blame humans.
I would argue this is more an issue of when citizens get complacent and stop holding those who govern them accountable. This is when any form of government will eventually start turning to the corruption. Those in power can change the rules while citizens are going about their lives. It works even better if the citizens are too busy and stressed out to worry about "silly things like politics".
People blame capitalism, but capitalism isn't the problem. The problem, as always, is power.
Under feudalism things were much worse. Serfs worked 6 days a week, 12+ hours a day. Up to 3 days of that week was spent tending your lord's lands for free.
Under absolute monarchies, dictatorships and police states you work as hard as you can for whatever hours your employer sets, and you keep any complaints to yourself or you're dragged off to a camp, or summarily executed.
So far, every time "communism" has been tried, it was just a dictatorship or police state where the leaders pretend that there's a higher ideal.
Capitalist republics don't give people at the bottom much power, but they get a little bit. And, that little bit is the best that the people at the bottom have ever had, even if it isn't much.
The fact that there are people at the bottom isn't the fault of some political system, and especially isn't the fault of capitalism, it's the fault of human nature.
Capitalism is better than feudalism, yes. The problem is that Capitalism inevitably gets to the point where it is more detrimental to the population as a whole than it is beneficial (Global Warming, Wealth inequality, power imbalances, etc.), and that point is now.
Capitalism did bring us many advancements, but we have outgrown it. Just because it did good things at some point doesn't mean that there isn't something better. We should all be striving towards better as a species, but we aren't.
I agree with most of your individual points... But your thesis relies on a false assumption.
Capitalism is the current problem for 95% of the world.... Just like monarchies were a problem for that particular country. Just because many political and economic systems throughout history reflect an aspect of human nature to control and bequeath that control to their offspring, doesn't take capitalism off the hook. Hell, if that were the case, we could blame everything on the evolutionary drive to be sexually successful, and not place the blame on anyone or anything else. That's what those at the top would love the rest of us to believe.
