*sigh* Must I, once again, warn against the perils of false dichotomy? Today I encountered a college-level economics textbook from the Eisenhower era. It took the same viewpoint that you did -- that capitalism implies less government and socialism implies increased power of government. It lavished praise upon Samuel Gompers, a reformist trade-unionist, while dismissing radical unionism as an anachronism. Still, in small print it gave mention to the IWW as a "surviving radical left-wing union." Seems ambiguous, no? What is a radical leftist? An extreme statist? Undoubtedly this book, and others like it, gave many the wrong impression. I find this node linked to Preamble to the IWW Constitution. The IWW is not Communist. The IWW is Anarcho-Syndicalist. Extreme statism is not the only form of leftism.

Basically, there are four major forms of property relations:
Proponents of the latter three all claim to be socialists. Adding to the confusion, pro-capitalists usually think only two-dimensionally; that is, they think only of the second as socialism (a myth readily accepted by state socialists.) Of the four, there are examples of the first three in practice.

So you see that a defense of capitalism based upon the failures of nationalization (or state socialism) is rather unpersuasive to those of us who are more familiar with socialistic theory.
BTW, even so-called "anarcho-capitalism" is authoritarian; reasons for which I shall not go into great detail in this node. Suffice it to say that whether or not an oligarchy holds state power, it is still an oligarchy.