Capitalism is a system where, so it is claimed, atomized individuals pursuing their "rational self-interest" produce an inherent moral and societal good. This is to be aided by a lack of regulation and interference by non-market forces. The freer the markets the freer the people.

This case is a pretty clear example of how this is not in fact the case. By the metrics of a captialist system this should be a huge success. You have investment, voluntary contracts, free markets and fierce competition that results in huge amounts of innovation. Yet the result is horribly useless waste that hurts society. I think it's pretty fair to call it out.