How can capitalism result in anything other than crony monopolies?

The government _not_ hand-picking winners and losers (bailouts, lobbyists, etc.) would be a good start.

In the end, it boils down to whether firms in a given industry have increasing or decreasing returns to scale. For example, there are no hairdresser empires as this tends to be a profession that can already be operated efficiently at a small scale. Other sectors, especially those with high fixed costs, tend to produce monopolies.

Yes, but it's also a huge indictment of "free market proponents" who tend to oppose any regulation, as it implies the need for muscular regulation of the market.

In American political terms, calling it an indictment of 'capitalism' is a little imprecise but not really wrong.

It's a bit hyperbolic to call it a huge indictment. Or in fact, an indictment at all. It's more like a mildly divergent opinion.

I'd agree and call it a mildly divergent opinion. The banks being regulated or the Republican primary candidates would call it outright communism. Depends on the yardstick, I guess.

The truth is always somewhere between the marketing and the haters