This is exactly it. Capitalists just assume that the Venn diagram of "profitable innovation" and "socially useful innovation" is a circle, but the evidence entirely refutes that. I mean really, it's only the idealists who believe that. Actual capitalist economists would see it how we see it, they just think we need to put "incentives" in place to correct it.

It's like how we have a desperate need for new antibiotics but none are being developed since it's not profitable. I mean there are a million examples but that was the first one that popped into my head.