Personally I think only Direct Democracy is better then Capitalism.

Capitalism works because all people supposedly would like to be rich.
Inevitably this leads to a Plutonomy: a few rich who control all the power.
Besides, a system that values profit above anything else leads to more sickness, wars, crime, prostitution, gambling/pyramid crimes etc. as in all these things money can be made. 
More about the pitfalls of Capitalism and Indirect Democracy follows later. 

With the emergence of the internet a Direct Democracy is feasible. Imagine instead a system based on the idea that all people want innovation and improvements to their lives. 
A Direct Democracy in the 'Wikipedia or social network style', where everyone can amend and add proposals or laws.  Proposals would be peer reviewed by trusted and democratically chosen/rated peers. 
A system based on innovation and the premise everyone wants to improve their own life, job and circumstances. Everyone wants innovation, change for the better and improved quality of life!

The result: People are willing to put some effort and resources into thinking how their life would be more rewarding, enjoyable, healthy, meaningful and... profitable. (as opposed to merely profitable). If they are able to implement those changes, all of those aspects would get a boost, not only the single aspect of profit.

When people are able to make their own proposals to e.g. re-arrange that local trafficlight, remove that speedbump, or to propose any idea people have which would improve their lives, a new weath of idea's will be put forward. And just like Flickr or other concepts which include a public voting system on what's beautiful, interesting or desirable, I am convinced that absolutely unimaginable wonderful idea's will end up floating to the top of the sea of idea's, and will make for an acceleration of progress and innovation never seen before. Voting will be voluntary, and multiple-choice. All proposals who get to the voting stage will be checked for viability and thoroughly investigated to be acceptable choices by experts in the appropriate fields (weather infrastructure, finance, health, science etc) The usual argument that the general populace is too dumb to be given direct decision-making power is not valid here as all available choices are in fact already calculated to be viable and smart choices. Voting will be on community, city, province, national and worldwide levels.

So imagine: you know or have interests in a certain discipline. Let's say you know a lot about farming, because you are a farmer, or you know about aviation as you are a pilot or make a lot of mileage for work, or maybe you're a researcher or a patient of a rare disease, or even a common one like diabetes. 
Let's see: look up the appropriate subject and area, select either the pre-voting brainstorming stage or select the idea's that actually made it to the voting stage. Wow! Look at the wealth of idea's and proposals!
You vote for the proposal you agree with, or against the proposals you disagree with, optionally leaving a comment why you voted for or against. and.. in the pre-voting brainstorming idea stage: possibly make your own amendment or create a new proposal and publish it!

Much like the change.gov idea, really... but instead it being a scam as the politician behind the website went ahead and actually broke 80% of his promises (see 'the Obama deception'), it resulting in ACTUAL CHANGE!

You know... some argue you can't leave voting up to be voluntary; no-one would do it.... but for example see how much blogs are in existence! Most people know that when you look on blogs concerning computer problems, or health problems you find more streetwise solutions then when you would find one expert and ask him. The ideas of many always outperform the ideas and solutions of the few. 
An example: governments used to believe voluntary armies wouldn't work, but most countries have voluntary (but paid) armies now) 
Similarly people thought Wikipedia would be a mess as everyone can make changes to it. Did it become a mess? No! Why? Because there are no 'clandestine change'
The full power of social networking and the conglomerate efforts of the entire populations desire to do away with the unproductive the stagnant, and welcome the change and progress would be used to its full potential.
a system based on the premises that everyone must have a chance to change their own lives for the better and allows people to think about this and participate in this, will have a result in a rapid progress of civilization.

We have seen the power of social networks, systems where the individual inputs the creativity. And it works. 
It works better then Capitalism works. Example: Wikipedia. It’s really not that difficult. Capitalism promotes the exploitation of human beings as it puts capital first. Social Networking type Direct Democracy will enable you, your neigbour and the city you live in to change your environment to what you want it to be. I am convinced more then 100% it will improve the creativity, efficiency, fairness, and enjoy-ability of society. 

pkmn2002-cptlsm@yahoo.com
 An anonimous individual.