I think I agree with the main thrust of your arguments, but can you point at an existing capitalist system that is not in many respects "crony" capitalism? (Switzerland, maybe? I've heard good things about them.)
I suspect we need a new term for what we want. "Capitalism" is too sullied by use.
The Scandinavian nations are pretty solid non crony cap states, as are the old standbys of Singapore and Hong Kong.
No nation is pure, of course. But we can look at examples of crony policies within otherwise capitalist-ish nations and compare to less crony-ish policies within those same nations.
It all gets a bit muddy real quick, but I guess we have to do the best with what we've got.
I can't speak to practices in Scandinavia or Hong Kong, but I've lived in Singapore, and while it has plenty of good points, and lots of things just work, it also exhibits much of what I consider to be crony capitalism.
First, there is a great deal of overlap among the leadership of government, the military, education, and business. As in, the same dude is CEO of a large company and a Colonel in the army and last year he was minister for something-or-another. When he gets tired of this company he'll teach at NUS for a bit. If you're on track to slide into that top echelon when you're still in your twenties, you're golden, otherwise your prospects are more limited.
To a seemingly greater extent than is true even in USA, the government is involved in everything. Fortunately, the bureaucrats seem to make generally good decisions, but they're still making decisions. The genuinely competitive industries are export-focused, which I guess is OK for a small nation for which exports are so important.
Everyone has heard about the fairly severe punishments Singapore has for various crimes, but perhaps not how much enforcement varies based on the identity of the criminal. Even before you get to the punishment stage, law enforcement and related surveillance pervades society, and affects different classes of people in wildly different ways. This isn't an economic effect per se, but the choices people make as a reaction to this have economic consequences. Also, I can't get over the fact that for 34 of its 48 years, Singapore's PM has been LKY or his son.
I suspect we need a new term for what we want. "Capitalism" is too sullied by use.