There is no "Invisible Hand"

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4. Even in theory, the benefits of capitalism only happen when everyone plays by the rules.

Regulation is not interference with true capitalism. Regulation is an integral part of capitalism.

Capitalism works well only when trusts and monopolies are prevented so prices reflect market forces, advertising is truthful so people can make rational decisions, externalities (such as pollution) are prevented so that third parties not involved in a transaction don't pay a price for someone else's trade, etc.

Without such regulation, it's not true capitalism, it's economic anarchy, and it becomes more of a wealth extraction game rather than a beneficial allocation of scarce resources.

An economy without regulation makes as much sense as football without officials. Sure, the blow a call every now ima d then, but football would be pointless and unwatchable without refs.