I suppose the next logical step in this discussion would be the inverse of it - an example of capitalism working FLAWLESSLY. My own opinion is that capitalism is just as flawed in theory - a fair society driven by individual needs and compulsions. Perhaps the logical conclusion of this would be anarchy. (I would be interested in reading any materials relating to the Anarchist movement. I enjoy reading the alternatives)
Anyone can tell you the downfalls of capitalism. The promises of Communism are... quite possibly not quite obtainable, true, and the midground was meant to be Socialism, but even that's been tainted by both the USSR era and the American capitalist 'hammer' smashing all alternatives to pure unrestrained greed. If anything, capitalism restricts social progress to a degree, it doesn't consider other people, it is purely focused around the self.
Example? Take artwork. Some particulars I could count as an expression of 'art' would be games, music... even books. All are individual works, the product of someone's imagination, just as a painting would be. Now, technically, this would be looking at the social aspects of capitalism, but an economic system does affect both sides - social and economic. Anyway, you would consider these to be easily distributable in the modern world. However, we now run into the problem of profits. If it won't make someone money, it won't exist. For a fair society, that is entirely unfair, and to a degree, the internet has lessened this pressure of distribution, but still we see other side effects.
I'm not a communist, I don't believe the communist ideology works, but socialism is quite different. There's a middleground somewhere, an alternative to capitalism, I reckon, and that is the next step in the world economy.