I agree with much of what you say, though likely I believe much more than you in public democracies taking a proactive role in subsidizing economic stimulus and market innovation, promoting cultural diversity, and serving as a stronger watchdog for the public interest against corporate and private exploitation.
I'm still a market capitalist, but at least with strong public governments we can demand information, particiapte by running for office ourselves on an individual level, vote bad actors out, and make our voices heard... you can't really do any of that with the private corporations that would dominate society in the absence of enthusiastic, idealistic governmental initiatives and regulations. The private sector really doesn't have to care about anything except profit unless compelled to by the government, and at a certain point mega rich corporations can very much transcend the competitive free market that you believe would keep everything in check.
With FDR as my paragon of conscientious, energetic and motivated democratic governance protecting the public interest, I don't believe extricating the government so that the "ugly" masses, as you say, can live under a more libertarian equilibrium of cut-throat private interests will make progress on any of the biggest problems we likely agree exist. Laissez-faire politics have a terrible track record of building mirages of prosperity based on prepostrous fraud and corporate exploitation in what amounts to an epic societal bank robbery, and it's always an FDR-style governmental reaction that has to clean up the mess.