Regardless, free-market capitalism is not predicated on freedom from government intervention; in fact, a government is necessary in order to protect the freedoms of the individual. That should be the purpose of the government: protecting the freedom of its citizens. Creating an environment that allows voluntary trade of goods and services to exist. Not picking winners or losers. Not imposing regulations that create monopolies. Not encouraging bad behavior by banks. Not rewarding bad decisions by auto manufacturers. Not being in bed with unions and corporations alike.
Here's how I think about it: What can one corporation do to a person? Not much. What can one government do to a person? Take away his freedom, imprison him, and / or kill him. Would I rather have flawed, power abusing individuals the power to impose their will over an entire country, or just their company? Would I rather centralize power in a way that is not accountable to anyone, or would I rather have power be decentralized and much more accountable to me?
No one is arguing for no government. But we are looking at the present state of affairs and the reasons we got here, and then looking at the past and seeing what happened then and why... and we're realizing that, for the most part, more government is bad.