From what I gather, there are really two facets of libertarianism. The social libertarianism, meaning let people do what they want, stop banning everything, drug war is futile, etc. Then there is the economic libertarianism, which means keep the government out of most, if not all business dealings. Deregulate, etc.

I highly suspect people are much more interested in the first, but not really the second. Interests who stand to benefit from the second are selling them as a package deal and we will end up only getting the second. In other words, the arrest machine will keep running, but businesses will be free to fleece customers, government and employees with impunity.

Surprising though, regulation is intended to save capitalism, not hurt it, at least in the long term. If capitalism runs down a path where it no longer benefits the vast majority of citizens in any given country, there will be hell to pay resulting in the end of capitalism. That would be a shame too, properly regulated capitalism is a really great system.