The logic here is misplaced. Capitalism is good, when it operates in free markets. The reason why those who were supporters of capitalism are cynical about it today is because free markets are being disrupted by government interruption and bail-outs of failed financial innovations.
If the market place is free where bad decisions face bad results, we would have a more responsible and more robust capitalist society. But because governments are bailing out bad investments and creating a cushion for bad financial innovations, we are witnessing how big institutions are mishandling the nation's money and getting away with both a government bailout and hefty bonuses. Recent events are again testimony to that.
Innovation and capitalism are good. Subject to the condition that they operate in a free market and not in a distorted one.