> the objective function ... is: maximize the time people spend watching stuff

Sure, but the real problem is how well it works. Humans eagerly eat it up because their behavioral heuristics aren't adapted and get gamed. Humans want it and enjoy it and can't get enough, even though it sucks up their time without tangible benefit.

Reducing the problem to "capitalism" is like saying the only problem humans have with opioids is that the Sacklers get filthy rich and therefore humanity would be fine if only everybody could get the stuff for free at a friendly neighborhood government drug outlet.