The perfect capitalism of frictionless competition and complete transparency is the enemy of its own intent. In highly competitive and transparent markets, profits are driven asymptotically to zero. Groceries, gasoline, airline tickets... these are extremely low-margin industries

Correct, assuming no extra wealth is created e.g. innovation

At any rate, capitalism where everyone has similar information and resources works quite poorly.

For capitalists. I think parent meant it works best for the rest.