Of course there are in-between approaches like industrial policy in mixed economies, for example the South Korean shipbuilding industry. But those tend to work with the grain of capitalism, not against it.
It's absolutely best allocator of human effort there is. It has some problems but compared to alternatives it's almost perfect.
There’s something else out there that nobody has the imagination to personally figure it out and get alignment toward it.
It can also be true that capitalism is transitory to get to a place where much of the capital one needs is invented.