I have to disagree with you there. If Mcdonalds had such an "awful" product, nobody would eat there and it wouldn't be as popular. There are plenty of alternatives.
However I have to agree that others do it better. Hardees has the best fast-food burger around. Also the best ads :)
And just to make it clear, I am not trying to criticizes capitalism per se. I'm only basically stating the same thing the article is stating; that there is an inherent paradox in capitalism that makes it more complex to deal with than is directly apparent. Everyone that goes into business or deals with business indirectly through policy-making should be as aware as possible of this paradox, simply because it will prevent us from collectively ending up in a world with great processes but awful products or with great products but awful processes. Neither of which are very tempting scenarios.