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SPP
I'm interested in your idea that "super-competitive capitalism has spilled over into the democratic process." I think that argument can definitely be made - you don't need to look any further than the so-called Security and Prosperity Partnership (SPP) in North America for a good example.
That the process is so secretive is undemocratic enough, but coupled with the fact that the three countries' leaders refuse to meet with anyone but the North American Competitiveness Council (NACC), a group of CEOs from major corporations, is downright chilling. Major decisions about land, water, labor and policing are being made without any public debate and without input from social justice and environmental advocates.
That said, I believe that capitalism and democracy have always been at odds. You seem to be working from the assumption that there's something more recently gone awry with it. Is that correct? Does it not seem that the very notion of a "capitalist democracy" is fundamentally flawed?