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Government intervention in the economy doesn't mean it's not Capitalism IMHO: I see that as an unnecessarily restrictive definition. I think of capitalism in more broad terms as being for-profit private ownership of trade/industry.
I can agree that there's some theoretical upper limit at which Crony Capitalism turns into an outright Corporate State, but I don't think we're quite there yet, and hopefully we can avoid it (as much as we seem to be headed that way, unfortunately).
Capitalism is literally defined by free markets, which means little to no government intervention, and specially not the government helping certain corpos crush their competitors
What you have in your country is a whole different thing
So my point from the start is that it seems inevitable that capitalists would levy their economic power to gain political power. The laissez-faire ideal sounds good (for those with capital, anyway), but without institutional protections against it, those with the most money would be dumb not to levy that money so they can rig the system.
So we're quibbling over different thresholds at which government intervention means it's no longer "Pure Capitalism", but from my perspective Regulatory Capture is kind of inevitable, without protections against that happening. So that's why I think it's just part of Modern Capitalism in most places, and an "Oligarchy with a Capitalist Facade" is just a different life-stage of Capitalism. I'm all in favor of the institutional controls against corporate takeover/influence of governmental bodies. Corporate lobbying is a cancer, because it's drowning out the public's voice in politics.
Yes, the state needs to set up rules to specifically prevent corruption of the market.
You don't seem to get that the rest of the world views capitalism differently from the US
You're making a pretty big assumption! I've lived most of the last fifteen years in South America, so I actually do have a good hold on how folks in other nations view capitalism, and the USA's economic and political systems. My job for years was in a biological research institute that was part of the Uruguayan government, and before that for a decade I worked in small towns across the Amazon, in Peru and Colombia.
You went from America to America's playground
Ah, so when you said the "rest of the world", you are excluding Latin America. Where is your high horse located, and what do you think the rest of the world includes?
Outside of those regions
Also, you didn't really explain how they didn't see capitalism as the lack of direct government intervention